Both the Senate and House budgets for FY 2010-2011 fund the need-based higher education tuition grants and the merit-based scholarships at the current year's levels. The Senate adjusted the source of funds in the House version to deal with an unexpected shortfall of $126 million. In order to reconcile the funds, the Senate moved PASCAL from the #2 priority under excess unclaimed lottery prize money to the #4 position, but increased the maximum appropriation from $1 million in the House budget to $1.5 million. Based on the average for the past six years, there should be sufficient excess unclaimed prizes to fund fully the Palmetto Fellows, LIFE and HOPE scholarships. Funding for PASCAL is less certain, but still a possibility depending on how many prizes go unclaimed. 

The Senate version of the FY 2010-2011 budget goes back to the House for concurrence. If the House does not agree with the changes made by the Senate, a Conference Committee of three senators and three representatives will be appointed to resolve the differences. Once the House and the Senate agree on a budget, it will be sent to Gov. Sanford. Unless Gov. Sanford signs the budget as passed by the legislature, the two bodies will have to address the Governor's line item vetoes before the bill becomes law.

Trying to balance the many demands caused by state revenues that have shrunk by $2 billion over the past three years, senators argued strenuously throughout the week over the highest and best use of the state's limited resources. This year's extended debate in both the House and the Senate is a prelude to next year's budget battle when the state could face a revenue shortfall of another $1 billion or more.