WASHINGTON - South Carolina Gov. Mark Sanford on Friday released a budget proposal that calls for an optional flat income tax and cuts spending as the state prepares for tough economic conditions in 2009.

The $5.8 billion fiscal 2010 budget does not include any new borrowing. It would spend $800 million less than last year's original budget as state revenue is expected to decline by 8% this year, the largest decline in at least 50 years, according to state estimates.

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