Columbia, South Carolina—Today, Governor Henry McMaster unveiled his Executive Budget for the fiscal year 2025–2026, laying out a plan that places a high priority on disaster preparedness, infrastructure, education, tax relief, and fiscal restraint. With a $1.8 billion budget surplus due to South Carolina’s thriving economy, the governor highlighted the transformative potential of the planned investments.
In a letter to the General Assembly, Governor McMaster said, “I think we will set our state on a course that will provide the opportunity for prosperity, success, and happiness for generations of South Carolinians by thinking big, being bold, and making these transformative investments.”
Key Budget Highlights
Governor McMaster is suggesting lowering the personal income tax rate from 6.2% to 6% as part of his ongoing efforts to reduce income taxes. It is anticipated that this elimination will save $193.5 million for taxpayers.
$200 million is set aside in the budget to increase teachers’ beginning salaries to $50,000 annually before the deadline. More funding will be used to promote school choice, support full-day 4K programs, and guarantee that every school has a school resource officer.
The governor wants to allocate $80 million in state lottery funds for need-based financial aid and freeze in-state college tuition for the sixth year in a row. Additionally, a $2 million study will look at the state’s higher education system’s future.
In recognition of the state’s infrastructure requirements, $50 million will be used to cover Hurricane Helene-related expenses, and $100 million will be used to construct and repair bridges. A new Public Assistance program in South Carolina will get an additional $150 million to aid nonprofit organizations and local governments in their catastrophe recovery.
A $2,000 tax credit for first responders, $14.5 million for law enforcement wage increases and new hiring, and $43.2 million for prison upgrades and corrections officer retention are all examples of significant investments in public safety.
In addition to monies to investigate burying electric power lines to lessen storm-related disruptions, the budget allocates $15.5 million for land preservation and flood mitigation initiatives.
To address the state’s high rates of stroke and dementia mortality, a $100 million neurological hospital is being planned. $95 million is also set aside for scholarships for technical college students who want to pursue professions that are in high demand.
Economic Momentum and Vision
Governor McMaster credited prudent fiscal policies and robust economic growth for the state’s surplus. His budget demonstrates his dedication to maintaining this momentum while attending to urgent needs throughout the state of South Carolina.
Visitsc.gov to learn more about the governor’s Executive Budget and related papers.