SC Governor Releases FY2025-26 Budget Proposal

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Last week, Governor Henry McMaster unveiled his proposed budget for FY2025-26, which includes his recommendations and the priority items he would like to see the General Assembly include in the final version of the budget released later this year. Thanks to the continued strong performance of the state’s economy, lawmakers will once again have a significant budget surplus (somewhere between $1.6 and $1.8 billion) in one-time and recurring dollars to appropriate.

Notable items included in the Governor’s proposal are:

  • $240 million in disaster relief to cover recovery costs that are not eligible for FEMA reimbursements.
  • $200 million to raise teacher salaries and increase starting teacher pay from $47,000 to $50,000.
  • $193.5 million to reduce the state’s individual income tax rate from 6.2% to 6.0%. Tax relief will be a top item of discussion in this year’s legislative session.
  • $100 million to the Department of Transportation (SCDOT) for the acceleration of bridge infrastructure improvements throughout the state.
  • $95 million for technical college scholarships for critical needs jobs through the SC Workforce Industry Needs Scholarship Program (SCWINS).
  • $20 million to continue the SC BOOST program, which provides wage supplements directly to qualified individuals employed in childcare facilities in South Carolina to retain these caregivers and reduce turnover rates in childcare centers.
  • $13.7 million to the Department of Environmental Services (DES) to reduce the backlog of existing permit applications and shorten the timeline for permitting decisions to no more than 90 days.
  • $10 million to create Electric Vehicle (EV) training institutes.
  • $1 million to launch a tri-share pilot program that would assist qualifying employees, who work with participating employers, with childcare costs. Through this innovative new approach, childcare expenses are shared by the employer, the employee, and the State of South Carolina with each contributing one-third of the cost.

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