Dear Friends:

When it comes to budgeting for government, thankfully, South Carolina is far different than the federal government. It has been 24 years since Congress balanced our nation’s budget. That year, 2001, our national debt was $5.8 Trillion. Washington’s out-of-control spending has resulted in America’s debt skyrocketing 630% to $36.5 TRILLION! That’s unsustainable.

By comparison, the SC General Assembly produces an annual budget that is balanced — we don’t spend more than we take in. Even better, legislators sock away the maximum in our state’s “rainy day” savings fund, and the SC government’s debt is minuscule.

Sneak Peek at the Next Spending Plan

South Carolina is the third fastest-growing state in the nation by population increase and the fastest-growing state based on the percentage of population growth. That calls for spending to keep pace.

After many weeks of public hearings, the House Ways & Means Committee, on which I serve, passed the coming year’s preliminary budget totaling $14.6 billion. I emphasize “preliminary” because the proposed budget will be debated on the House floor in a few weeks and then sent to the Senate for consideration. It’s a long process, and the budget finish line in May will look different than this starting line version. Regardless, here are key budget proposals:

Meaningful Tax Cuts: Over $1 billion in tax cuts included in the budget ($800 million in property tax relief and $200 million in income tax relief).

Fraud Check: This budget would require all state agencies that issue benefit checks to develop and implement measures to detect and stop fraud.

K-12 Teachers: $112 million will provide teachers with a $1,500 salary increase, raising starting salaries to $48,500. This keeps us on track to the goal of reaching the $50k starting salary by 2026. It was only in 2017 that the starting teacher salary was a meager $28,190. This proposal would increase starting teacher pay by 72% compared to 2017. Also proposed is a new Teacher Salary Schedule that includes four lanes: Bachelor’s, Master’s, Master’s + 30 years, and Doctorate. Raising pay is a way of addressing the teacher shortage and retention.

K-12 Student Funding: Since the 2018-19 school year, the state portion of the average per-pupil spending has increased 44%, reaching $8,914. That brings the total average per pupil appropriation to a whopping $19,075, reflecting a 42% increase over the same years. If increased funding had resulted in a significant rise in student achievement, we would all be pleased with the investment. Sadly, it has not.

Higher Education: The budget for higher education rises 6% in this proposed budget. The Life, Hope, Palmetto Fellows scholarships and need-based tuition grants are fully funded with $345 million. The tuition at public colleges and universities has been frozen for the past six years, making higher education more affordable for South Carolinians because increased state funding has mitigated tuition hikes. That’s not sustainable. This proposed budget funds 45% of the requested tuition mitigation. It allows the universities to raise tuition for incoming freshmen but freezes that tuition rate for those students for as long as they are enrolled. Additionally, tuition rates for currently enrolled in-state students would continue to be frozen at current levels.

Hurricane Recovery: In September, Hurricane Helene ravaged the western portion of SC, including Aiken County, causing widespread damage. This budget provides $222 million to match federal FEMA funds going to towns, cities, and counties. SCDOT has removed over 4 million cubic yards of debris, and all affected roads and bridges are now under contract for emergency repair. This budget provides $50 million in reimbursement to SCDOT, which the matching funds from FEMA do not cover. Also allocated is $38 million to the state’s Office of Resilience to replenish the disaster relief fund so SC will be prepared for future disasters.

Road & Bridge Repair: SC has the fourth largest state-maintained highway system, maintaining about 42,000 miles. However, there is a bridge crisis, with many of our Interstate and primary bridges built in the 1950s and 1960s aging out and in critical need of repair and replacement. This year, we invested $200 million in fixing bridges, and this proposed budget dedicated another $200 million to meet the goal of a $1 billion investment in bridges over five years.

State Employees: Under this budget proposal, state employees at the lower end of the pay scale will see a larger percentage increase than those at the high end. A salary survey of 42 states shows SC ranked 34th in average salary. The Department of Administration recommended that pay bands for state employees be instituted to provide realistic and fair pay. Currently, pay is not tied to the realities of the labor market. This budget calls for all employees under the new pay bands to which they are assigned to be brought up to a new minimum. If employees are above the new minimum, they will receive a 2% pay increase. For comparison, some lowest-paid employees will receive an average increase of more than 17%, while those in the higher pay bands will receive an average of a 2% increase. The total cost for these pay adjustments is $66 million.

Health Insurance: State employees and teachers on the state health plan may see an increase in their health insurance premiums for the first time in 12 years. The state has paid every annual increase in employee contributions to health insurance for a dozen years, totaling $1.7 billion. That’s not sustainable. This budget would see employees increase their contributions by about $37 a month, which is only 27% of the total increase in insurance costs. The state will contribute the remaining $89 million. The increase would not apply to retirees on the state health plan, as their premiums would remain unchanged.

Healthcare: To meet the needs of SC’s growing and aging population, this budget maintains existing services and reimbursement levels for Medicaid, continuing critical services that allow seniors to remain in their homes while reducing the wait list for services by expanding coverage and increasing provider rates for behavioral health services. We support a partnership between USC and the University of Florida system to build a cutting-edge clinical network utilizing artificial intelligence.

Economic Development: This budget prioritizes SC’s rural areas in desperate need of economic development and jobs by investing in water and sewer projects in local communities, which are critical requirements for every economic development project. Recognizing the fast pace and competitive nature across the Southeast in recruiting businesses and industries, $80 million is designated for preparing industrial sites so SC can proactively meet the demands of businesses wanting to move or relocate to SC.

LEGISLATIVE NEWS

Protecting Children Online

House Republicans took a bold step this week in the fight to protect SC’s children from the dangers of social media. I was proud to vote for the Social Media Regulation Act (H.3431), which establishes critical safeguards to keep kids safe online and ensure parents have control over their children’s digital presence.

This bill requires social media platforms to verify users’ ages and obtain parental consent for minors under 18 before they can create an account. It also limits harmful content exposure, restricts data collection on minors, and prevents social media companies from using addictive algorithms to keep kids online longer.

Additionally, the bill empowers parents with tools to monitor and restrict their child’s social media use, ensuring they have control over privacy settings, screen time, and interactions. Social media’s impact on mental health, online safety, and childhood development is undeniable. House Republicans took a firm stand this week, proving once again that we prioritize parents’ rights and the well-being of SC’s children over Big Tech’s bottom line.

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LIES, LIES, AND MORE LIES

I pause the real news to briefly focus on the political shenanigans of the SC Freedom Caucus. These radical right-wingers team up with the American Action Fund to routinely send urgent alerts to grassroots Conservatives. Again, this week, that group bombarded the constituents of Conservative Republican Representatives across the state (including some of you) with emails and text messages lying about our efforts to protect children online in the Social Media Regulation Act. Their latest claim: “the bill empowers government bureaucrats to indoctrinate your children on how to judge the ”credibility” of media.” Not true! However, lying, exaggeration, and distortion are the Freedom Caucus’ political gifts. There are always those in politics, like the SC Freedom Caucus, who seek to have the spotlight on themselves, no matter the tactics they use.

New School Choice Bill Ready for House Debate

The newest School Choice legislation is on speed drive in the legislature. S.62, passed by the Senate, would reinstate Education Scholarship Accounts (ESAs) following the Supreme Court’s ruling nixing the original law passed last year. The court ruled that the State Constitution forbids state monies from being used for private school tuition. That ruling ripped away promised scholarships, leaving thousands of SC families scrambling last Fall.

This week, the House Education Committee held a marathon hearing on the bill to restore school choice. The Committee amended the Senate bill (S.62) to make the scholarship program nearly universal while maintaining priority for lower-income families and other key groups. The committee put a unique twist on funding by making the scholarship money flow through a trust fund. This is a constitutional way of allocating funds because a trust fund, administrated by a trustee, would no longer be state dollars. The scholarship amount for each student would be $6,000. The legislation is expected to be debated by the full House of Representatives next week. School choice is sweeping the nation, and it’s time for SC parents to have the ability to find the best education for their children.

SC Charter Schools

The U.S. Department of Education is dropping a regulatory requirement imposed by the Biden administration that had threatened federal grant funding for SC charter schools. As part of its effort to break down bureaucratic barriers and enhance state and local autonomy, the Feds will no longer review how states approve and monitor groups that sponsor charter schools as a condition of its charter schools grant program.

State Auditor Selection by Governor

The House unanimously passed a bill (H.3430) that specifies that the Governor will appoint the State Auditor with the advice and consent of the Senate. Currently, the State Auditor is selected by the State Fiscal Accountability Authority.

SC Supremes Hear Abortion Challenge (Again)

For the third time in three years, a major abortion case is before the S.C. Supreme Court. This time, opposing lawyers asked the justices to determine when, under state law, a fetal heartbeat becomes detectable. Under the SC’s two-year-old abortion law, abortions become illegal after a heartbeat becomes detectable, which attorneys for Planned Parenthood contend is nearer nine weeks rather than the six weeks widely believed the heartbeat can be detected.

Supporting SC Veterans

With almost 400,000 veterans calling SC home, Representatives voted unanimously to ensure veterans receive the support and services they deserve. This week, we passed H.3510, strengthening veterans’ services by increasing state funding for two full-time County Veterans Affairs Officers in each county. Aiken County is the home of more than 18,000 veterans, and our Veterans office is ably staffed. This legislation will help smaller rural counties meet veteran needs by improving access to critical benefits, healthcare resources, and support programs for veterans.

Aiken & Edgefield Counties Join Military Affairs Council

SC’s Military Base Task Force would get a name change if a bill passed unanimously by the House wins Senate approval. The renamed SC Military Affairs Advisory Committee is charged with sustaining and expanding the military presence in SC. Additionally, H.3564 was expanded to include representation from Aiken and Edgefield Counties. They will join other officials from military-related countries on the committee.

New SC National Guard Leader

This week, Governor Henry McMaster announced Brigadier General Robin Stilwell’s appointment as SC’s next Adjutant General to lead the National Guard. With Senate approval, Gen. Stilwell will succeed the current Adjutant General, Major General Van McCarty, upon his retirement after six years in that position.

General Stilwell was deployed to Afghanistan from 2007 through 2008 and Kosovo from 2012 through 2013. His last deployment was to Kuwait from 2020 through 2021 as the Deputy Chief of Staff for the U.S. Army Central Command.

According to Gov. McMaster, “General Stilwell’s extensive experience within the SC National Guard and his proven leadership in domestic and overseas operations make him the right choice to serve as our next Adjutant General.”

Trump Taps Gov. McMaster

President Donald Trump has tapped Governor Henry McMaster to join the Council of Governors, a bipartisan group of 10 governors — five from each major political party — tasked with strengthening collaboration between states and the federal government on national security, disaster response, and military coordination issues.

PICTURE NEWS

Spending Tuesday evening with Boy Scouts at St. Mary’s Church in Aiken was fun. I fielded their questions about state government and other civic issues. Many of these young people are striving to become Eagle Scouts, and I encouraged them to finish strong.

Thursday felt like ‘Home Schooler’s Day’ at the SC State House. After our legislative session, I brought these students and their parents onto the House floor. We finished in the spooky basement under the State House, which isn’t on the official guided tour. They loved it!

Recently, I got a “temporary desk mate” on the floor of the SC House of Representatives. Former Rep. Jim Stewart was my predecessor in serving House District 86. Jim was at the State House celebrating Coop Day. He’s a long-serving Trustee at the Aiken Electric Coop.

 

PHOTOS OF THE WEEK

WELCOME TO THE NEIGHBORHOOD! I’m impressed with the new Northside ‘Dollar Tree’ on HWY. 1 across from the Aiken Airport. It’s spacious, clean, and has a friendly staff. And, best of all — $1.25 seems to be their favorite price!