Legislative Update Notables in Budget Deal

/in , , /by

Last Wednesday evening, members of the budget conference committee struck a compromise agreement on the state’s over $15 billion spending plan for FY2026-27.

The compromise agreement increases the homestead exemption for homeowners aged 65 years or older from $50,000 to $75,000 and sets aside roughly $380 million in one-time money for community projects. A separate legislative panel will be established to review all the community projects included in the House and Senate versions (roughly $430 million) and produce recommendations for a separate bill to be voted on by the General Assembly later this year.

Notable items in the budget include:

  • $309 million to reduce the state income tax from 6% to 5.21%, as prescribed by the Income Tax Reform bill (H.4216/Act 110) that was signed into law by Governor Henry McMaster.
  • $190 million to the Department of Transportation (DOT) for bridge repairs.
  • $175 million to the County Transportation Committees (CTCs) for road work.
  • $112 million to increase teacher pay and raise the minimum starting salary to $50,500.
  • $95 million in technical college scholarships for critical-needs jobs via SCWINS.
  • $75 million to the Department of Education (DOE) for construction projects for rural K-12 public schools.
  • $60 million for statewide airport infrastructure improvements.
  • $15 million for readySC.
  • $12.5 million to DOT for a road buyback program to transfer state roads to county control.
  • $11 million for statewide water and sewer projects.