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SC lawmakers pass teacher pay raises, tax cuts in $13 billion budget

Both the House and Senate passed the South Carolina state budget for FY 2024-2025 on Wednesday.

COLUMBIA, S.C. — Pay raises for teachers and state employees, a permanent income tax cut, money to fix roads and bridges are just a few items in South Carolina's final budget for the next fiscal year.

The House and Senate returned Wednesday to vote on several items left unfinished at the end of last session, including the $13 billion budget.

A conference committee of lawmakers met several times since session ended in May to finalize the budget and come to a compromise on items like the $100 million going towards income tax cut. The money came from a $600 million surplus from sales taxes. $400 million of the surplus will go to fix roads and bridges in the state. 

"Those dollars are reflected in what I submit to you is a very good budget," said Rep. Bruce Bannister, Chairman of the Ways and Means Committee. "It’s taking care of the people in the state of South Carolina and addresses those things that this body has identified as our priorities."

Teachers and state employee raises were items that were already solidified on the budget before session ended. It was a priority for the legislature this year, Rep. Bannister says.

"We kept our promise to continue to raise the starting teacher salary. In this budget it goes from 42.5 to 47 thousand in the state of South Carolina," says Rep. Bannister. "We include 170 million in state employee pay. That's at least $1125 to every state employee. If you make over 50 thousand you get 2.25% raise."

But some lawmakers would have liked to see more raises for other groups, such as retirees. 

"I know people who retired a decade ago and their retirement pension from the state is still the same which puts them in a very difficult financial position. I work very hard to make sure that people who retire get a pay increase in their paychecks. Just as state employees get raises, I think retirees should get raises."

Other believed spending in the budget was "wasteful." The South Carolina Freedom Caucus held a presser before the House vote to explain why they'd be voting against the spending plan. They said they'd like to have seen less money going towards state agencies.

”The reality of this budget is it does not cut the size and scope of government. No agency takes a cut. They only take increases," said Rep. Jordan Pace. "We do not have the right priorities."

Other provisos, or one-year-rules, in the budget include banning cell phones in public schools and requiring students in schools to use the bathroom and locker rooms for their assigned sex at birth. Public schools will have to enforce the provisos to receive state funding.

All the items in the budget will go into effect at the start of the fiscal year, which is July 1.

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