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STATE BUDGET: The House approved a final version of the state's $7 billion budget Thursday that falls short of meeting a basic state function: getting children to schoolhouses. With diesel fuel prices stubbornly above $4 a gallon, the state will probably need more money than it budgeted in the fiscal year that begins July 1 to keep school bus tanks filled for the entire school year. The Education Department says there are no plans now to park buses or pack more students on them. Elsewhere, public schools took $34 million in reductions to a host of programs, including those for the academically gifted, preschoolers with disabilities and the arts.

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ILLEGAL IMMIGRATION: The South Carolina House voted Wednesday to remove fines of up to $10,000 per worker from a bill intended to punish businesses that knowingly hire illegal immigrants, changing a key provision passed earlier by the Senate. The latest proposal also removed employers' ability to use a new paper-based system created and audited by the state. Businesses could verify a worker's immigration status only by using a federal database or state-issued identification. Instead of heavy fines, the House version would suspend a company's business licenses for up to 30 days. The measure returns to the Senate. If it doesn't accept the changes, the proposal will return to a conference committee for the second time this year.

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ILLEGAL IMMIGRATION-FARMERS: South Carolina farmers say the state's plans to clamp down on illegal immigration will only hurt the economy. They agree the current immigration system is flawed, but the proposed state oversight of employee documentation won't fix it. Farmers say all current employee verification systems are flawed and they worry not enough Americans want to do the backbreaking jobs. House Judiciary Chairman Jim Harrison said he understands farmers' concerns and hopes Congress will create an efficient guest worker program for agriculture.

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CIGARETTE TAX: The Senate approved a 50-cent per-pack increase to the state's cigarette tax, setting aside much of the new money for health care for low-income residents. South Carolina's cigarette tax is currently 7 cents, the lowest in the nation. The tax is expected to collect $159 million yearly. Almost all the money would be spent on expanding the state's Medicaid program and creating a new voucher system for the state's lowest-income residents to get private health insurance. Republican Gov. Mark Sanford has promised to veto it.

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SEX OFFENDERS: Sex offenders would be barred from living within 1,000 feet of places where children gather - such as schools, day care centers and parks - under legislation sent to the Senate floor. The measure exempts sex offenders who bought their homes before the bill's passage. At least two Senate Democrats worry the bill would force sex offenders to move to rural areas they represent.

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ALTERNATIVE COURT: Legislation creating an alternative court system for nonviolent offenders and requiring prisoners to serve most of their sentences was sent to the House floor. As a compromise, the House Judiciary Committee decided the alternative courts must be in place before requiring all prisoners to serve at least 85 percent of their sentences. Opponents say getting rid of parole will cost the state money and make prisoners more unruly, but supporters say the proposal makes the justice system more accountable.

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TROOPER AGGRESSION: The governor's nominee to lead the Department of Public Safety will face questioning from senators later this month about how he plans to restore public trust in the agency. Senate Judiciary Chairman Glenn McConnell directed his committee's staff to prepare questions for veteran law enforcement officer Mark Keel. Confirmation hearings are likely to begin May 19 and last two days. The previous public safety director and Highway Patrol commander resigned after incidents of misconduct by troopers were discovered.

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LEGISLATOR-GUARDSMAN: The South Carolina legislator who sought a combat role in Afghanistan is returning to his statehouse desk. Bennettsville Rep. Doug Jennings told the House Thursday that Columbia Rep. James Smith would be back home on Sunday. Smith left for training and an Afghanistan tour 15 months ago as an Army National Guard captain. He returned briefly last year before heading to Afghanistan.

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RELIGIOUS DISPLAYS: The Ten Commandments could be displayed in South Carolina schools and courthouses as long as they are posted with other historical documents like the Bill of Rights under legislation sent to the Senate floor. Supporters said the legislation closely follows U.S. Supreme Court decisions to limit the government's role in expressions of religious preference and should survive a court challenge.

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COPPER THEFTS: People selling scrap copper would have to show photo identification, and thieves could face up to 10 years in prison under legislation heading to the Senate floor. The Senate Judiciary Committee approved the House bill Tuesday as a way of trying to curb copper theft. The requirements also would apply to people selling stainless steel beer kegs.

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BOOZE INHALER: A device that turns liquor into a breathable vapor of oxygen and alcohol would be banned from South Carolina under legislation sent to the House floor. The House Judiciary Committee voted Tuesday to ban the Alcohol Without Liquid device, known as AWOL. More than 20 states have already banned it. The president of the North Carolina company distributing the device has said lawmakers' fears are unfounded. Kevin Morse has said it takes up to 15 minutes for a half-shot of liquor to vaporize, and people don't inhale the full amount.

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CIVIL WAR: South Carolina's observance of the 150th anniversary of the Civil War would be overseen by a new board under legislation approved by a House committee. The bill creating the South Carolina Civil War Sesquicentennial Advisory Board was sent to the House floor Tuesday. The 19 unpaid board members would plan and develop activities across the state to commemorate various events, including the first shots fired on Fort Sumter in Charleston harbor in April 1861.