New budget proposal includes disaster relief and tax cuts
Governor Henry McMaster has presented our state legislature with a robust 2025-2026 budget spending proposal, which includes a strong focus on disaster relief, education and tax cuts.
The available funding results from our growing economy coupled with savings that have increased following conservative spending in recent years, providing a $1.8 billion surplus. Here are some of the Governor’s priorities:
Disaster Relief
After the devastating 2024 storm season, including Hurricane Helene, which left major damage in the upper state, including $621 million in agriculture, the Governor has asked the legislature for $240 million in state funds for disaster recovery. This is part of a larger effort to help repair 6,300 homes and businesses, reopen roads and bridges, and address significant damage to public infrastructure.
While FEMA is expected to reimburse our state for much of the immediate recovery costs, federal dollars often don’t cover everything. To address this, the Governor’s plan includes:
• $50 million for the Department of Transportation to handle road repairs and debris removal.
• $40 million to replenish the Office of Resilience emergency response funds.
• $150 million to create a grant program for local counties, municipalities, utilities and nonprofits that weren’t eligible for federal funding.
Additionally, the Governor is proposing a study to explore the feasibility of moving major power lines underground to prevent future widespread outages during storms, something Hilton Head Island was wise enough to implement 20 years ago.
Education Priorities
When Governor McMaster became governor in 2017, he asked the legislature to raise the state’s minimum teacher salary from $30,000 to $50,000 by 2026, and with this new proposal, he has earmarked $200 million to achieve that goal, raising from its current level of $47,000.
Among other education priorities are $2.8 million for South Carolina’s 4-year kindergarten program (a 7% increase) and $30 million to maintain the now six-year freeze on tuition at state colleges and universities.
Income Tax Cuts
Governor McMaster’s budget proposal includes a reduction in the state’s top income tax rate from 6.2% to 6% at a cost of $194 million. Other GOP leaders in the legislature are hoping to get the rate even lower so that our effective rate could be below our neighboring states.
Additionally, noteworthy line items include:
• $100 million to build a new neurological hospital operated by the University of South Carolina.
• $100 million for SCDOT to repair and replace an undefined number of the State’s 9,000 bridges, more than 10 of which have been classified as structurally deficient.
• $43 million in new appropriations for the State Department of Corrections to hire new officers, increase medical and mental health services, provide pay raises, and cover the costs of deferred maintenance of all state prisons.
In summary, the Governor’s budget proposal reflects a strong commitment to rebuilding from last year’s storms, supporting teachers and students, expanding healthcare and cutting taxes. While this proposal is just the starting point, it sets the tone for what we can expect as the legislature begins crafting the final budget beginning this month.
Jeff Bradley is the representative for District 123 in the State House of Representatives.
