The funds would come from a number of sources, including budget savings and reductions, improved efficiencies in federal matching funds, and redirected excess funds. The plan must still be approved by the legislature.

"Last week I met with college leaders from around South Carolina and pledged to roll up my sleeves and find a way to restore higher education cuts and also expand technology and research capabilities of our institutions," Hodges said. "Today I'm proud to announce an ambitious plan that will fix the problem in higher education. It will both restore the 15 percent cuts and allow us to aggressively invest in new research and technology capabilities at our institutions."

Under a budget proposed by the House Ways and Means Committee, USC faced budget cuts of about 11.5 percent. To make up the funds, University officials have been considering raising tuition, increasing freshman enrollment, and using other management options to cut costs.

Hodges said that money in his plan would restore proposed cuts for the 2001–2002 budget only, which would be funded at this year's level.

"I think that the higher education leaders would say that one-time money is better than no-time money," Hodges said, drawing approval from the more than 20 college and university officials and students leaders who stood behind him on the Statehouse steps. "It allows us to move to another budget year to July 2002 when the economy may have dramatically improved and the revenue picture may have improved. But I think the choice is between looking for ways we can bridge the gap or doing nothing about it. I choose doing something about it."

Hodges said state college and university officials presented a "compelling case" about the impact tuition increases and program cuts would have on their institutions.

"The institutions came together with us and worked to try to find a solution to this problem," the governor said. "I believe that we have laid out a plan that will meet the concerns that have been addressed by the higher education community and will be good for education in our state. That's the bottom line. It's good for our schools, our students, and the long-term prosperity of South Carolina." Hodges' proposed revenue options for restoring budget cuts to higher education include:

• $24 million for improved efficiencies in federal matching funds

• $35 million for excess extended maintenance funds at the Barnwell low-level nuclear waste facility

• $5 million for other general fund budget savings and reductions

• $60 million for bond funds for maintenance, equipment, and technology

• $2.2 million for debt collections for higher education.