COLUMBIA, S.C. - As he passed around promotional signs from a Wal-Mart store, Gov. Mark Sanford asked his Cabinet members Wednesday what comes to mind when they think of the retail giant.

"Low prices," "one-stop shopping" and "value," members replied.

"When you think of state government, do you think value? Do you think lowest possible price?" Sanford asked. Probably not, and that means the culture of government needs to change in South Carolina, the governor said.

"Wal-Mart is a phenomenal company that's been able to consistently deliver value. I think it's something we can think about. When you all are trying to think outside the box, how is it that we're thinking about value for the customer? How is it that we can more cost-effectively deliver services?" he said.

Sanford held his second Cabinet meeting Wednesday - but it was the first time the media were allowed to sit in on the meeting. Agency heads discussed how they have been making changes and cutbacks to better serve the public in the current budget crisis.

The Revenue Department has slimmed down from two deputy directors to one, said Director Burnie Maybank. The agency also reworked the Property Tax Division to work directly with local government, addressing the concerns of citizens who felt disconnected from the Revenue Department, Maybank said.

The Public Safety Department has identified more than $335,000 in cost savings by consolidating and reorganizing administrative programs, said Director Boykin Rose.

The Labor and Licensing Department has cut back from four deputy directors to one, and the Department of Alcohol and Other Drug Abuse Services has reduced its office rent by about $50,000.

Sanford told the newer agency heads - including Robby Kerr, who was appointed Tuesday to lead the Health and Human Services Department - to follow the example of Insurance Department Director Ernst Csiszar.

Csiszar is the only Cabinet member appointed by former Gov. Jim Hodges who was retained by Sanford.

When Csiszar took over the agency, which regulates insurance companies and the rates they charge in South Carolina, he was responsible for 120 full-time employees and a budget of about $6.7 million. Today, the agency has been reduced to 91 employees with a $4.4 million budget, Csiszar said.

Six deputy positions have been trimmed to two.

"It made sense to cut it back to a more streamlined operation," Csiszar said.

The department also reviewed the process of outsourcing for divisions such as financial examinations. In the past, outside companies had been hired to go into the field to examine companies and bring back data for analysis.

By hiring additional personnel and taking on the job in-house, the department actually saved money, Csiszar said.

Csiszar deserves "kudos" for listening to the needs of customers and focusing on providing better service, Sanford said.

Most of the governor's first Cabinet meeting was closed to the media. Sanford decided to open the second meeting to the press after receiving criticism from organizations such as the Society of Professional Journalists and the South Carolina Press Association.

Critics argued that governors can set a good example for school boards and other public bodies by opening meetings to the press and the public.

Sanford said that made him re-evaluate his decision.

"I'd be willing to sacrifice a more effective - perhaps - and more lively Cabinet meeting on the altar of what I believe to be the greater good, which is openness in government," Sanford said.

SCPA Executive Director Bill Rogers applauded Sanford's decision.

"It sends a real strong message to school boards and county councils across the state that open government can work," he said.