Governor. Henry McMaster signed the state’s $14.5 billion spending plan for the next 12 months on Wednesday, which includes an accelerated income tax cut.
But McMaster didn’t authorize all the spending. His 21 vetoes stripped $2.29 million from the budget in earmarks, spending proposals and reservations. Lawmakers can return to Columbia to override those actions, but legislative leaders have indicated they don’t plan to go back and override vetoes.
McMaster removed, among other things, entities or organizations that were not registered as charities with the Secretary of State, that had failed to file accurate annual financial statements, or that had allowed their charitable status to lapse.
These were My Community’s Keeper Mentor Group – Advance Peace, NOWW Empowerment House and Community Projects, SC Center for Visual Arts – Downtown Building Revitalization Acquisition, and An African American Settlement Community Historic Commission for the restoration of a Long Point School House.
McMaster said other vetoes were necessary because the spending was not appropriate. For some proposals, there is a clear idea and path of how the money is spent, but for others, it is less transparent.
The governor also vetoed two budget provisions that would have made it easier for property owners to block state regulations designed to protect public beaches. One would have compensated oceanfront landowners accused of violating a beach management law that protects the shoreline for the public if they won their lawsuits.
Last year, the governor vetoed about $1.3 million of the $13.8 billion spending plan, and lawmakers made no attempt to restore spending.
McMaster made it clear that he believes there is a better way to approach the earmarking process and re-proposed a grant program.
“I don’t think the public has confidence in this earmark process,” McMaster said. “Most people don’t even know there’s money available for these things. This is just not the way to spend people’s money.”
McMaster is a strong advocate for a grant program instead of the current earmark process. However, when asked why he wouldn’t simply veto all earmarks until the Legislature has a grants committee in place, he said some of the earmarks are good and serve a very worthy purpose.
“It would be unnecessary,” McMaster said.
Income tax cut, teacher salary becomes law
South Carolina residents will see their top income tax rate drop to 6.2% as part of the budget. The top tax rate had already dropped from 6.4% to 6.3% this year as part of a phased reduction in the income tax rate. The top income tax rate is part of a phased reduction that will bring the maximum income tax rate to 6%.
The budget authors used excess sales tax money to accelerate the income tax cut.
Budget writers sent an additional $200 million to state aid for classrooms, which will raise the state’s starting salary for teachers to $47,000. McMaster has said he wants to raise the starting salary for teachers to $50,000 a year by 2026 as part of an effort to address the state’s growing teacher shortage.
“We recognize how important our teachers are and we hope to achieve that goal and succeed,” McMaster said.
The budget includes a pay raise of $1,125 or 2.25% for government workers, whichever is greater.
Budget writers have included $125 million for Clemson University to spend on building its veterinary school. The school had hoped for $175 million, so it will have to borrow $50 million to complete the project.
The budget includes $100 million for the University of South Carolina to build the university’s health campus.
The state will also spend $20 million on school safety improvements and $5 million on creating school building maps.
The budget includes $69 million for colleges and universities to freeze tuition rates for out-of-state students for the sixth year in a row.
Lawmakers also appropriated $30 million to relocate the departments of Public Health, Mental Health, Disability and Special Needs Services, and Alcohol and Other Substance Abuse Services to 400 Otarre Parkway in Cayce as the state builds a health care campus.
Lawmakers spent $30 million on rural infrastructure, $200 million on bridges and $117 million on rural traffic safety.
The state Attorney General’s Office will receive an additional $1.575 million annually to establish a Violent Crime Prosecution Task Force to help prosecutors across the state address the backlog of violent crime cases.
The budget includes $2 million for more school counselors.
The Justice Department is also receiving $10.9 million for its Cell Phone Prevention Program, which aims to prevent inmates from making unauthorized phone calls.
The Department of Juvenile Justice will also receive $15 million to implement its master plan for the institutions.
$4.2 million for an audit of the $1.8 billion account.
The state will also spend an additional $103 million annually on higher Medicaid costs, including higher rates for behavioral health providers.
The Department of Social Services received an additional $5 million annually for stability in child care, $1.1 million annually to address hunger and food insecurity among the elderly, and $2.5 million annually for child care grants and support for working families.
