We’re Whacking Your Taxes

Dear Friends:

The South Carolina General Assembly is back at the State House today (June 26) to vote on the state budget that accelerates tax cuts, invests in education, improves infrastructure, and supports law and order. This budget delivers a win for taxpayers, teachers, state employees, and everyone who dodges potholes while driving.

Since the legislature adjourned its regular session in early May, a conference committee consisting of three representatives and three senators has been negotiating the differences in the budget versions passed by each legislative body. This annual ritual requires compromise. Unlike the US Congress, where absolutists often demand their position prevail, your state legislature works to compromise to deliver a balanced budget that targets priorities to enhance our state.

This year, the budget compromise came just in the nick of time with the July 1 start for the state’s fiscal year. Last Friday, the conferees agreed to the $14.45 billion General Fund spending plan. The elongated negotiations create a tight timetable to pass the spending plan by the legislature today and send it to the Governor, who has five days to review it and issue line-item vetoes.

Whacking Taxes

Tax cuts are the crown jewel in the 2024-25 budget.

It’s time to celebrate if you pay state income tax. This budget knocks down the state income tax rate most people pay from 6.4% to 6.2%. That totals nearly $100 million. Only a couple of years ago, our top rate was 7%, and the legislature approved a five-year initiative to cut the top income tax rate from 7% to 6%. This budget speeds up the timeline from five years to four. Money for the tax cut comes from surplus sales tax dollars accumulated since 2020.

This budget decision represents progress, but I believe South Carolina needs to be far more aggressive in lowering the top state income tax rate to be competitive with North Carolina (4.5%) and Georgia (5.39%). 

Salary Hikes

Public school teachers will benefit from the $200 million allocated to raise their pay. The minimum salary for a starting teacher would be increased to $47,000 a year from $42,500. That is a 56% increase over the past seven years when starting teachers were paid slightly over $30,000. The budget also would allow teachers to get a yearly raise for each of their first 28 years instead of their first 23. Increasing teacher salaries is essential to attract and retain teachers in these inflationary times.

The House and Senate split the difference in how much to raise salaries for state employees. Workers making under $50,000 yearly will get a $1,125 yearly increase, while those making more than that will get a 2.25% raise. The House had proposed a higher raise.

The state will fully cover price increases for the state employee health insurance plan. That is a significant benefit for state employees since insurance premiums are skyrocketing for everyone. 

Fixing Roads

In the coming year, you will likely see more orange construction cones on highways, roads, and streets. This budget increases statewide spending by $200 million for bridge repair and replacement. This infusion augments the monies SCDOT has already dedicated to bridges. The goal is to speed up the fixing of dangerous bridges.

The budget sends a whopping $200 million to county transportation committees (CTCs) to repair and pave secondary and rural roads.

Aiken County’s Transportation Committee does an outstanding job of wisely using the state money they are allocated annually. CTC Commissioners are nominated by local legislators and appointed by the Governor. Those Commissioners carefully evaluate local roads before allocating funding. They conduct regular hearings at the Aiken County Government Center, where citizens can bring road issues to them.

South Carolina’s rural roads account for 30% of all our driving fatalities. Those roads in Aiken County and elsewhere are receiving a considerable investment to make them safer. In Aiken County, SCDOT has resurfaced 329 miles of roads since the start of the gas tax increase in 2017, and another 75 miles are being paved this year.

Public Safety

I have long believed that public safety is the government’s #1 priority. Without public safety, civil society can give way to anarchy. Look no further than Haiti, other third-world countries, or our liberal, big cities’ ‘Defund the Police’ mentality right here in America. Not so in South Carolina.

This budget spends $29 million to upgrade the state’s Department of Juvenile Justice prisons, which have experienced violence.

Another critical need is jamming prisoner’s illegal cell phones. The Department of Corrections will receive $28 million, a portion of which will be spent on technologies to make cell phones inoperable for inmates with contraband technology behind bars. The number of state troopers on the road is not keeping up with our state’s population growth. Therefore, the Highway Patrol will receive $1.6 million in salary increases. Another $18 million is being invested at DSS to protect children.

School safety continues to be a state priority. This budget calls for an additional $2 million to increase the number of School Resource Officers — another $5 million to map school safety using the latest technology.

Our Universities

I serve on the House Ways & Means sub-committee that reviews the budgets of our state’s public colleges and universities, so this area highly interests me.

Most importantly, tuition for in-state students will remain frozen for the sixth consecutive year to make college more affordable. Tuition mitigation totals $77 million.

This budget includes $125 million in one-time funding to complete the construction of Clemson’s new veterinary medicine school. The University of South Carolina receives $100 million for its new medical school. MUSC College of Medicine has been allocated $22 million for its academic building.

SC State has long been neglected in substantial state funding for campus construction. No more! This budget provides $30 million to replace the Whittaker Library, which frequently floods and must be sandbagged during storms. Over the past three years, that brings to $115 million in capital funding for SC State.

USC-Aiken receives special funding of $3.5 million for the urgent need to relocate soccer fields from the land where the $60 million Advanced Manufacturing Collaborative (AMC) is being constructed to the sports complex area near the Convocation Center.

Other Budget Highlights

• Veterans Nursing Homes: Fully funds the capital and operating expenses
• Rural Infrastructure Assistance: $47 million
• School Buses: $28 million for new school buses statewide
• K-12 Instructional Materials: $89 million
• Saving for a Rainy Day: $1.1 billion to fully fund our reserve fund

Social Issues

As always, there are legislative issues that did not cross the finish line during the regular session that will be included as one-year special laws in the budget.

Among the provisos is one that requires public school students to use the bathrooms and locker rooms of the sex assigned at birth.

Another proviso requires school libraries to provide detailed plans on how they will keep inappropriate material out of children’s hands or lose state funding.

Banning public school students from using cell phones in class has been introduced as a proviso. Administrators and teachers say they are broadly supportive of the ban. Expert studies found that cell phones are an enormous classroom distraction and impede learning.

Finally

The House and the Senate are expected to pass the final budget today, barring any last-minute snags. We will also consider legislation passed by conference committees. More on that next time.

PHOTOS OF THE WEEK

A Historic Moment in Aiken County! The Honorable Martha Rivers Davisson took the oath of office to be a Circuit Court Judge at her investiture. The 2nd Judicial Circuit, encompassing Aiken, Barnwell, and Bamburg Counties, has been the only SC circuit with just one judge. The legislature created a second judgeship, and the General Assembly elected Martha in April.

 

Want to Know More?

Do you want to learn more about my positions, bill sponsorships, voting record, and past writings? Here are some handy links:

• About Me: https://taylorschouse.com/about-2/
• My Positions: https://taylorschouse.com/issues/
• Sponsored Bill & Voting Record: http://tiny.cc/b1pouz
• Recent Newsletters: https://taylorschouse.com/category/newsletter/

I’m Available & AT YOUR SERVICE 

It is my honor to be of service. Please do not hesitate to contact me if you need assistance navigating state government or have any thoughts or concerns about the legislature.

In Your Service,

Email: Bill@taylorschouse.com
www.TaylorSCHouse.com  

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