The SC economy remains strong, allowing for an extra $1.7 billion in spending
Teachers and state employees are set to receive raises under a spending plan currently under discussion in the South Carolina House this week. However, many other funding requests from state agencies are being turned down as the flow of funds from pandemic relief and strong economic conditions start to taper off.
South Carolina finds itself in a favorable economic position, with revenues increasing despite tax reductions, according to House Ways and Means Committee Chairman Bruce Bannister. He briefly summarized the proposed $13.2 billion budget for the next fiscal year to his colleagues last week.
Read More: State official demands answers about Biden’s attempt to register illegals to vote
With unemployment at a historic low, the additional $1.7 billion available for spending would be a significant boost. However, Bannister noted that state agencies submitted requests totaling around $4.7 billion.
“We’re returning to more typical budget levels, and considering the requests, this makes for a rather tight budget year,” stated Bannister, a Republican from Greenville.
South Carolina’s budget for this fiscal year amounted to approximately $13.8 billion.
The House budget session commences on Monday with the approval of numerous sections of the spending plan that enjoy consensus among House members. The subsequent debate will ensue, and if history is any indication, it will involve the chamber’s most conservative members addressing social issues such as the elimination of funds allocated to university diversity initiatives, as seen in recent years.
The proposed budget for the 2024-25 fiscal year includes a significant amount of new spending.
A total of $200 million would be allocated to increase teacher salaries. Every teacher would receive a raise, and the minimum salary for a starting teacher would be raised to $47,000 per year—a nearly 70% increase from a decade ago. Additionally, the budget would enable teachers to receive a yearly raise for each of their first 28 years instead of their first 23.
All state employees would receive raises as well. Those earning less than $66,666 annually would receive a flat $1,000 raise, while those earning that amount or more would receive a 1.5% pay increase. The state would also allocate $107 million to cover the rise in health insurance premiums for workers—a practice that has been ongoing for over a decade.
Homeowners would benefit from $500 million in property tax relief as the state utilizes surplus funds generated from a sales tax increase in 2006. State officials estimate that the average savings would range from $277 to $472. Governor Henry McMaster had proposed allocating the $500 million towards bridge repairs.
The House plan allocates $200 million to replace bridges, many of which are at least 60 years old. A similar amount was included in the budget for this year by Representatives, but it was removed by the Senate.
Additionally, the House budget sets aside $100 million to sustain income tax cuts that are reducing the state’s top income tax rate from 7% to 6%.
Furthermore, state universities would receive $61 million in funding in exchange for freezing tuition increases, while technical colleges would be granted $95 million to continue providing scholarships for students pursuing critical jobs in healthcare, manufacturing, and education.
The proposed budget includes $8 million allocated to the South Carolina Election Commission to support the enforcement of the state’s new early voting law.
Additionally, $5 million would be designated to continue the efforts to transition the Department of Motor Vehicles to a new computer system. This system will facilitate the development of an app featuring a mobile driver’s license and electronic vehicle titles. Republican Rep. Heather Ammons Crawford of Socastee emphasized the urgency of completing this work by the end of the decade, as failure to do so could lead to a crash of the old system.
Law enforcement would not receive as substantial increases as in previous budgets. However, the budget includes $7 million for leasing a new Department of Juvenile Justice jail and $1.6 million for hiring two trial teams at the state attorney general’s office. These teams can be invited by local prosecutors to assist with the growing backlogs of criminal cases.
Republican Rep. Phillip Lowe of Florence remarked, “The last two years of raises we have given to law enforcement and the Department of Corrections have worked. Morale is up, they’ve been able to hire and retain much better.”
The House budget also includes investments in economic growth. Approximately $55 million would be earmarked to further expand the state port in Charleston, while $29 million would be allocated for improvements at the primary airports in Myrtle Beach, Greenville, and Charleston.
Additionally, the House budget includes $2 million to promote events commemorating the 250th anniversary of the American Revolution. This includes a campaign aimed at reminding people that events in South Carolina played a pivotal role in tipping the balance of the war in favor of the newly formed United States.