As the General Assembly enters its final weeks of this year's term, Gov. Mark Sanford called on lawmakers to focus on his proposals to reform education funding, restructure state government and cut income taxes while increasing the state's cigarette tax.

Since taking office in January, Sanford has pushed income tax relief as key to renewed economic prosperity in the state.

Sanford said his proposal to cut income taxes, coupled with a 53-cent-a-pack increase on cigarettes, would put more money into the pockets of small-business owners and individual income earners. It also would attract more business and industry to South Carolina, thereby growing the economy, he said.

The extra revenue from cigarette taxes also benefits underfunded Medicaid programs and provides millions of dollars in federal matching funds, Sanford said

If Medicaid is not funded, underprivileged people will turn to more expensive care at emergency rooms -- which comes out of the pockets of taxpayers.

The proposal, which was introduced March 13, had been part of the state's $5.2 billion budget approved by the Senate Finance Committee. But Tuesday, it was ruled out of order during Senate budget debate and was sent to a Senate Medical Affairs subcommittee.

Sanford also wants reform in how education is funded. A bill called Streamlined Management and Accountable Resources for Teaching, or SMART Funding, would give school districts flexibility to spend funds as they see fit.

The bill, introduced March 26 and currently in a House committee, would consolidate dozens of spending sources into six categories.

Sanford also called on lawmakers to work on his proposal to restructure state government.

Under the South Carolina Government Restructuring Act that was introduced April 16, the governor would appoint some statewide officers who are now elected and the governor and lieutenant governor would run on the same ticket.

The final day of the Legislature is June 5. Any legislation not completed by then can be revived next year, as the General Assembly is in the first year of a two-year session.

School Size Limits Compromise Explored

Legislation suggesting enrollment guidelines for new schools and encouraging the conversion of existing buildings into schools received an endorsement Wednesday from a House subcommittee.

A week after rejecting Gov. Mark Sanford's call for limiting the size of student bodies in all public schools, a subcommittee that screens education bills backed less proscriptive language for future construction.

Lawmakers would have to take extraordinary steps for the measure to move to the top of their agenda before the legislative session ends June 5.

Nevertheless, the House K-12 panel voted unanimously for a bill that advises school districts to design buildings with capacities of "approximately" 700 students at the elementary level, 900 students at the middle school level and 1,200 students at the high school level.

Sanford suggested legislators set enrollment caps of 500 students for elementary schools, 700 students for middle schools and 900 students for high schools.

Given the state's budget crisis, Rep. Bob Walker, R-Spartanburg, characterized the version he and four House colleagues backed as a "workable compromise" between educators, legislators and the governor.

Chip Campsen, a gubernatorial aide who monitored the subcommittee meeting, said, "we would have rather had the lower numbers."

Campsen noted two other provisions are viewed by Sanford as reform-minded. The bill says minimum acreage requirements no longer are necessary. It also gives the state Education Department authority to grant waivers of some school building rules that would encourage use of vacant structures.

Campsen described Sanford's interest in smaller schools as a way of stemming "suburban sprawl. He believes there should be smaller schools. There's an emphasis on education and a quality of life component to this."

As an incentive to convert vacant buildings into schools, the bill would allow local jurisdictions to collect fees in lieu of taxes as an incentive to keep privately owned property on tax rolls.

The proposed law also says school districts can own vacant land for no more than six years before they must use it or sell the property at public auction.