Governor announces South Carolina budget with tax cuts and teacher pay increases

In a recent Senate meeting, South Carolina lawmakers unveiled a budget that prioritizes the needs of hardworking families while ensuring fiscal responsibility. The proposed budget includes significant tax relief, reducing the top income tax rate from 6.2% to 6%, which translates to over $1.2 billion in permanent income tax savings for residents since the 2023 fiscal year.

Key highlights of the budget include a substantial increase in starting teacher pay, raising it to a minimum of $48,500—a 38% increase aimed at reaching $50,000 by the 2027 fiscal year. Additionally, state employees will receive at least a 2% pay increase, with a commitment to modernize the compensation system to align with market standards.

The budget also addresses essential services, fully funding the constitutionally required reserve funds and ensuring that health insurance premiums for state employees, teachers, and retirees remain stable. A significant focus is placed on public safety, with funding allocated to ensure that every school has a resource officer, addressing the current gap where 177 schools lack this vital support.

Infrastructure improvements are also a priority, with an additional $100 million earmarked for bridge repairs and over $220 million dedicated to hurricane disaster relief efforts. The budget aims to streamline government operations by reviewing organizational structures within health care agencies, identifying redundancies, and implementing necessary changes.

Overall, this budget reflects a commitment to maintaining a leaner state government while allowing taxpayers to retain more of their hard-earned money, ultimately benefiting families across South Carolina. As lawmakers move forward, the focus remains on balancing fiscal responsibility with the pressing needs of the community.