According to this story, the government of South Carolina probably won’t pay for any presidential primaries in 2012. In any event, the Democratic Party wasn’t planning one, so the story focuses on the Republican Party. The Republican Party says if the state won’t pay for it, the party will. This is why the Republican Party charges a filing fee of $35,000 for presidential candidates.
Ironically, under South Carolina election law, even if the Republican Party pays for its own presidential primary, it is forced to let all registered voters participate in its primary, whether they consider themselves Republicans or not. Thanks to Political Wire for the link.