7 issues shaping SC’s $14.5B state budget debate

South Carolina’s $14.5 billion state budget debate features stark proposals and tough decisions on spending and tax priorities. Lawmakers are weighing large disaster relief funding after Hurricane Helene, as shown by Gov. McMaster’s $240 million request to cover storm costs and bolster resilience programs.

There was debate over state employee and teacher pay, the fate of in-district stipends for legislators, and whether to freeze health insurance premiums for public workers, which the House and Senate now both support. Disagreements over agency funding, disaster recovery, and competing plans to reduce income taxes to 6% all fuel a budget season marked by competing visions for South Carolina’s future.

NO. 1: SC STORMS COST MILLIONS IN DISASTER RELIEF. HERE’S HOW MUCH MONEY MCMASTER WILL ASK FOR

The federal government adopted a disaster bill to help states like South Carolina affected by Hurricane Helene. | Published January 13, 2025 | Read Full Story by Joseph Bustos

NO. 2: SC MADE BILLION-DOLLAR ACCOUNTING ERRORS. HERE’S HOW MUCH IT’S COSTING IN ATTORNEY FEES

Lawyers are being paid to represent SC’s Comptroller General, Auditor and Treasurer’s offices amid an SEC investigation. | Published March 3, 2025 | Read Full Story by Joseph Bustos

NO. 3: FREEDOM CAUCUS’ DEEP CUTS TO STATE SPENDING PLAN REJECTED AS SC HOUSE OKS $14.6B BUDGET

The SC House Freedom Caucus pushed for cuts to have an even larger income tax rate reduction than planned and wanted cuts to portions of the budget including the Arts Commission and money to freeze college tuition rates. | Published March 12, 2025 | Read Full Story by Joseph Bustos

NO. 4: SC SENATE BUDGET LOCKS IN TEACHER RAISES. WHAT’S DIFFERENT FROM THE HOUSE PLAN?

Both budgets include plans to reduce the maximum income tax rate from 6.2% to 6%. | Published April 24, 2025 | Read Full Story by Joseph Bustos

NO. 5: THE SC SENATE BUDGET SLASHES $2 BILLION IN SPENDING. HOW DID THEY GET THERE?

Hard-line conservative South Carolina House Freedom Caucus members have praised the cuts. | Published April 25, 2025 | Read Full Story by Joseph Bustos

NO. 6: COULD SC LEGISLATORS SEE FIRST PAY INCREASE SINCE 1995? THE SENATE MAKES A PUSH

An increase in compensation would also have to be approved by the House. | Published April 24, 2025 | Read Full Story by Joseph Bustos

NO. 7: STATE HEALTH PLAN INSURANCE RATES SET WITH LATEST SC HOUSE BUDGET PROPOSAL

The SC House also changed how much it wants to spend on school resource officers for the upcoming year. | Published May 7, 2025 | Read Full Story by Joseph Bustos

The summary above was drafted with the help of AI tools and edited by journalists in our News division. All stories listed were reported, written and edited by McClatchy journalists.

©2025 The State. Visit thestate.com. Distributed by Tribune Content Agency, LLC.