South Carolina lawmakers just approved a $14.5 billion general fund budget on Tuesday, including tax cuts, raises for teachers and public workers, and hundreds of millions in infrastructure spending.
After months of heated debates between GOP and Freedom Caucus members, both chambers ended passing the massive new budget.
Among the most debated items was a $1,500 monthly stipend increase for the state’s 170 legislators, raising in-district pay from $1,000 to $2,500. The total cost of the increase is about $3 million. This marks the first time since 1995 that lawmakers’ in-district compensation has been raised.
In addition to the new stipend, most lawmakers receive a base salary of $10,400 per year, plus per diem allowances.
The new budget also includes:
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$290 million to reduce the top state income tax rate from 6.2% to 6%
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$80 million for $1,500 teacher pay raises, increasing the starting salary to $48,500
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$106 million to cover public employee health premiums and $66 million for a 2% pay band adjustment
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$71 million for in-state college tuition mitigation, including $12 million for Clemson and $14.4 million for the University of South Carolina
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$85 million for repairs at technical colleges
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$60 million to support Medicaid programs
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$25 million to modernize the Judicial Department’s case management system
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$200 million to repair bridges and $35 million for Hurricane Helene-related road damage
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$40 million for the Education Scholarship Trust Fund, which helps cover private K-12 tuition costs
Other allocations include funding for opioid treatment, early education, public health IT upgrades, drinking water programs, and local airport improvements.
The budget now heads to Governor Henry McMaster, who can veto individual line items before signing it into law. If approved, the budget will go into effect in July.