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STATE BUDGET: The state budget won second reading in the Senate, pushing the spending plan over a major hurdle. Democrats had tried to force Republicans to increase spending for schools and health programs, but GOP senators refused to do that without a way of paying for the increases. Senate rules were used to kill several sales tax increase proposals as well as more than $300 million in budget provisions that would have spared agencies from cuts. The Senate isn't expected to complete its budget work before Thursday.

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CIGARETTE TAX: Gov. Mark Sanford's push to reduce the state income tax failed a key test in the Senate on Thursday. The Senate voted down the tax cut, which was tied to a 53-cent-a-pack increase in cigarette taxes, 27-18. The higher cigarette tax would have generated about $171 million needed for state Medicaid programs for the poor, disabled and elderly. The tax reduction would have moved income tax rates from 7 percent to 5 percent during the next few years.

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DMV CHANGES: Sanford said he would like to renew his next driver's license on the Division of Motor Vehicle's Web site, which will host many timesaving improvements this summer. On Thursday, Sanford and several legislators announced changes that will make it easier to bypass the waiting lines at DMV including Saturday hours and improved customer service.

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PREDATORY LENDING: The Legislature gave final approval to a bill Thursday to tighten regulation of high-interest loans to protect South Carolina consumers. Members of the conference committee who negotiated the bill said they were confident Sanford would sign the bill. "It's a very good middle-of-the-road approach," said Rep. Harry Cato, R-Travelers Rest.

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OFFICER MEMORIAL: Sanford vetoed plans for a Statehouse memorial for law enforcement officers late Wednesday. While he supports putting the monument on Statehouse grounds, he said money for the $500,000 project could be better used by law enforcement agencies during the state's budget crunch. The South Carolina Troopers Association said Friday it supports Sanford, and the governor says he'll work with legislators to raise private funds for the project.

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DOME LIGHTS: People stopped by officers for traffic violations after dark will have to turn on their car's dome light under a bill approved by a House committee Wednesday. Amendments to the bill said that people who don't turn on their dome lights when asked by police will be fined $25 if they refuse to do so. Drivers that don't have working dome lights wouldn't be charged, said Rep. Joel Lourie, D-Columbia.

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CONDUCT GRADES: A bill requiring grades reporting on a child's conduct in school gained key House approval Wednesday. The measure won second reading on a 94-5 vote. "It's important because parents and students need that feedback," said Rep. Shirley Hinson, R-Goose Creek and the bill's sponsor.

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HORSE RACING: Allowing people to play the ponies in South Carolina could boost tourism and bring the state millions of dollars in revenues, Rep. John "Bubber" Snow Jr. said Tuesday. Snow, D-Hemingway, introduced a bill to bring pari-mutuel racing to South Carolina. The proposal must be approved as a constitutional amendment, receiving at least a two-thirds vote in the House and the Senate before going before voters.