South Carolina could eliminate funding for 2012 GOP primary, forcing a caucus instead

South Carolina could be on the verge of losing some of its political clout ahead of next year's presidential campaign.

With the state facing a nearly $800 million budget shortfall, Republican Gov. Nikki Haley is expected to veto a funding bill that includes cash that would pay for the state's 2012 GOP primary. Without the cash, state GOP officials tell The State's John O'Connor that the party could be forced to hold an independently funded 2012 caucus instead--thus ending South Carolina's hold on the "first in the South" presidential primary.

It's an awkward situation for Republicans in the state. On one hand, Haley, a tea party favorite who was elected by promising to reign in spending, is simply fulfilling a campaign promise. But the state GOP, while seeking to press Haley's message on spending, is also trying to argue that the primary is a "core function" of state government.

"Every fiscal conservative bone in my body screams to protect taxpayers in this case, but some functions of state government deserve our utmost respect," state GOP chair Chad Connolly said in a statement today. "I will continue to fight for state involvement in the primary."

If the state GOP is forced to switch to a caucus, this could mark a critical game changer for 2012 hopefuls—many of whom have already invested lots of time and money on wooing voters in the state. A caucus would likely favor long shot candidates, like Rick Santorum and Michele Bachmann, who have been courting conservative voters at the grassroots level for months. Since South Carolina holds open primaries, i.e., contests not limited to voters registered to either major party, contenders such as Mitt Romney and Jon Huntsman view independent and moderate voters as part of their path to victory in the state. However, those voting blocs tend to be less influential in party caucuses.

Haley has until Wednesday to veto or sign the pending legislation.

(Photo of Haley: Richard Shiro/AP)