State lawmakers return to Columbia Tuesday to begin debate on this year's budget. Leaders in the House and Senate say it will be one of the toughest budget years in decades.
The biggest issue will be where to make cuts to deal with an estimated $570 million shortfall.
Most lawmakers agree on the need to raise the state's 7 cents per pack cigarette tax, which is the lowest in the nation. The debate will be on how much to raise it and where the money from the tax should go.
The state's economic crisis has lawmakers ready to look at reforming the entire state tax system to make it more stable and fair.
They also want to change the complicated and confusing formula used for school funding, which now hurts poor districts and those that are growing the fastest.
In his budget proposal, the governor is asking lawmakers to make up the budget shortfall by considering an optional flat tax rate of 3.65 percent, paid for by increasing the cigarette tax by 30 cents.
Gov. Sanford also wants to eliminate the state's three sales tax holidays and charge a new $3.00 landfill tipping fee for garbage disposal.

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