COLUMBIA, S.C. - The state agency that manages Medicaid is asking legislators for $140 million in state money next year to replace federal grant money that helped buoy the health care program this year.

The Health and Human Services Department made its budget request this fall and it will be incorporated in Gov. Mark Sanford's executive budget, said HHS deputy director William Wells.

Wells said the agency wants the state to make the $140 million part of its annual funding. The money that came this year was part of the federal government's $20 billion aid package for states.

"Ideally, what you would like to see is for all of that to become recurring funds in the next budget cycle," Wells said.

State lawmakers have debated for some time how to pump more money into Medicaid, which provides health services to more than 800,000 of South Carolina's neediest residents.

One plan is to raise the state cigarette tax by 63 cents from the current seven cents a pack, one of the lowest tobacco taxes in the country. That would raise an additional $200 million, according to projections from the state Board of Economic Advisors.

Even if HHS gets the additional $140 million in state funding, the budget request doesn't take into account the anticipated rise in health care costs for those in the program, said Tim Rogers, a staffer with the House Ways and Means Committee who specializes in Medicaid budget issues.

Wells said his agency has "some strategies in the works to address that" but gave no details.

The agency has started a number of cost-cutting measures as well as decreased some fees it pays to doctors and hospitals in an effort to control those expenses.

Sanford has said he has a plan to fully fund Medicaid, but he has not released details of that plan. He plans to release his budget after Christmas, a spokesman for the governor said this week.