Columbia, S.C. – Governor Henry McMaster today revealed his Executive Budget for the 2025-2026 fiscal year, outlining a vision that prioritizes fiscal discipline, tax relief, education, infrastructure, and disaster preparedness. With South Carolina’s booming economy generating a $1.8 billion budget surplus, the governor emphasized the transformative potential of the proposed investments.
“By thinking big, by being bold, and by making these transformative investments, I believe we will set our state on a course that will provide the opportunity for prosperity, success, and happiness for generations of South Carolinians,” Governor McMaster stated in a letter to the General Assembly.
Key Budget Highlights
Accelerated Tax Cuts
Governor McMaster continues to prioritize income tax reduction, proposing a decrease in the personal income tax rate from 6.2% to 6%. This cut is expected to save taxpayers $193.5 million.
Education Investments
The budget allocates $200 million to raise the starting salary for teachers to $50,000—a year ahead of schedule. Additional funds will support full-day 4K programs, expand school choice, and ensure a school resource officer in every school.
Higher Education Affordability
The governor proposes freezing in-state college tuition for the sixth consecutive year and allocating $80 million in state lottery funds for need-based financial aid. A $2 million study will also examine the future of higher education in the state.
Infrastructure and Disaster Relief
Recognizing the state’s infrastructure needs, $100 million is allocated to repair and rebuild bridges, while $50 million will address costs from Hurricane Helene. Another $150 million is set aside for a new South Carolina Public Assistance program to help local governments and nonprofits recover from disasters.
Public Safety Enhancements
Significant investments in public safety include $14.5 million for law enforcement pay raises and new hires, a $2,000 tax credit for first responders, and $43.2 million for corrections officer retention and prison improvements.
Land and Environmental Conservation
The budget includes $15.5 million for land preservation and flood mitigation efforts and funds to study undergrounding electric power lines to reduce storm-related outages.
Healthcare and Workforce Development
A $100 million neurological hospital is proposed to address high stroke and dementia mortality rates in the state. Additionally, $95 million is allocated to scholarships for technical college students pursuing high-demand careers.
Economic Momentum and Vision
Governor McMaster attributed the state’s surplus to strong economic growth and sound fiscal policies. His budget reflects a commitment to sustaining this momentum while addressing critical needs across South Carolina.
For more details on the governor’s Executive Budget and associated documents, visit sc.gov.
