On Wednesday, the state Budget and Control Board decided against taking action on a $155 million deficit from the fiscal year that ended June 2002.

Under state law, the Legislature -- not the budget board -- has the sole authority to deal with budget problems from previous years.

That troubled Gov. Mark Sanford, who said the deficit violates the constitutional provision requiring the state budget to be balanced. Sanford also said the deficit could jeopardize the state's credit rating.

At Wednesday's meeting, Sanford said legislators didn't handle the issue this year and could choose to ignore it again next year when they are forced to confront a $350 million budget gap.

Although he agreed to allow lawmakers to handle the problem when they return in January, Sanford seems to have little confidence in the Legislature, particularly because 2004 is an election year.

"Part of the reason we're in this problem is election year politics," Sanford spokesman Will Folks said.

Sanford said he would support a law authorizing the budget board to act on deficits outside the current year.

That idea is supported by House Ways and Means Chairman Bobby Harrell, R-Charleston.

Sanford was encouraged by Wilkins' comments, Folks said Thursday.

"I think it would certainly be appropriate to have a statutory requirement," Wilkins said.

Currently, there is nothing in the law that sets a deadline for repaying funds, he said.

Members of the budget board will work on a plan to deal with the deficit and make suggestions to the General Assembly, according to Harrell, who also is a member of the board.

The money to repay the $155 million must come from the General Fund, putting an additional burden on next year's state budget.

Wilkins expects a "myriad of proposals" to be discussed next year, including a cigarette tax, alcohol tax and the removal of sales tax exemptions.

It's too early to say whether these proposals will find support, but Wilkins said the House sent a clear message this year against tax increases.

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