The South Carolina House has approved a $14.6 billion budget that includes a reduction in the state’s highest income tax rate from 6.2% to 6%, according to the Herald.
The budget, passed with a 99-13 vote, aims to accelerate the state’s planned income tax cut, costing approximately $200 million. It also allocates significant funds for state employees, infrastructure, and education, including increasing the starting teacher salary to $48,500.
“We want to enact the Trump agenda in South Carolina,” said state Rep. Jordan Pace, R-Berkeley, and leader of the House Freedom Caucus, who advocated for a larger tax cut to 5%. House Majority Leader Davey Hiott, R-Pickens, defended the budget, stating, “Law enforcement is not crap to me. Our school teachers are not crap to me. Our disabled and special needs kids are not crap to me.”
The budget includes $66.5 million for state employees and covers most of the expected increase in state health plan premiums. It also provides $200 million for the Department of Transportation to spend on bridges and $50 million for costs associated with Hurricane Helene.
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The Department of Commerce would receive $81 million to assist with site preparation and development through Locate SC. Additionally, $53.2 million more per year is allocated to freeze college tuition rates for in-state students.
The budget also sets aside $150 million for a facility to address brain health, $60 million in additional annual funding for Medicaid, $38 million to replenish the state’s disaster relief and resilience fund following Hurricane Helene, and $25 million to address high-hazard dams.
Despite these allocations, the debate centered on whether the state is spending too much. The House Freedom Caucus proposed cutting $1 billion from the budget, including defunding the state Arts Commission and reducing funds for the Department of Parks, Recreation and Tourism.
Rep. April Cromer, R-Anderson, criticized the budget, referencing the DOGE initiative by Elon Musk as a model for identifying federal spending cuts.
“Can you say no to the budget? I can, because it’s chock full of crap,” Cromer said. House Ways and Means Chairman Bruce Bannister emphasized the need for careful consideration of tax cuts, warning against making drastic changes without understanding the consequences.
The budget now moves to the Senate for consideration, where further debate is expected. The outcome will determine the future of South Carolina’s fiscal policies and priorities.
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