Taxes and Spending

Governor’s FY 2026 executive budget: The Good and The Bad

On Monday, Gov. Henry McMaster released his proposed state budget for the 2025-26 fiscal year, which starts July 1. The S.C. Legislature, which started its regular session on Tuesday, will consider it while working on their own budget versions.  How does McMaster’s 173-page executive budget compare to past ones?  The...

  • Governor’s FY 2026 executive budget: The Good and The Bad

    On Monday, Gov. Henry McMaster released his proposed state budget for the 2025-26 fiscal year, which starts July 1. The S.C. Legislature, which started its regular session on Tuesday, will consider it while working on their own budget versions.  How does McMaster’s 173-page executive budget compare to past ones?  The...
  • The 2026 South Carolina Responsible Budget: A Blueprint for Fiscal Discipline and Economic Growth

    By Vance Ginn, PhD., and Sam Aaron South Carolina has enjoyed significant economic success. With strong labor market growth and a favorable climate for business investment, the state continues to be one of the fastest-growing states in the nation. However, without a responsible approach to budgeting, this progress risks being...
  • Three budget solutions on our Christmas list

    This is the time of year when Governor McMaster is working on his proposed state budget to the Legislature, which starts its regular session next month. The next fiscal year begins on July 1st. The current state budget is $42.2 billion, including about $14.5 billion in state general funds.  The...
  • How South Carolina’s income tax cuts compare to the Southeast

    With the governor's recent approval of the FY25 state budget, South Carolina will continue its positive trajectory on personal income tax rates, accelerating the reduction adopted two years ago by lowering the top marginal rate from 6.4% to 6.2%. Initially, the House this year proposed a 0.1% point reduction in...
  • Budgetary process in need of transparency and accountability

    As state agencies prepare to submit their annual budget requests, now is an opportunity to re-evaluate the budgetary process and encourage the governor and agencies to comply with state budget law. 
  • Budget breakdown: Where SC taxpayers’ money is going in FY25

    The dust has settled on South Carolina’s new budget following Governor McMaster's announcement of a relatively short list of vetoes in early July. The 21 vetoes, striking $2.3 million in earmark spending and nixing a handful of provisos, represent a small fraction of the overall budget and only marginally exceed...
  • Getting the most tax relief out of the FY25 budget

    Update 6/21/24: After weeks of negotiations between House and Senate leaders, a budget conference committee on Friday advanced a compromise FY25 state appropriations bill that will accelerate this year's income tax reduction, taking the top rate from 6.4% to 6.2%. However, the House proposal to provide one-time property tax credits,...
  • Transparency efforts could illuminate SC’s budget process

    Giving citizens a clearer picture of where their tax dollars are going, and why As a research intern for the S.C. Policy Council, I attended many legislative hearings over the spring months to learn about the state’s next budget. My objectives were twofold: see firsthand how the budget is constructed...
  • Mystery money: How to return the $1.8 billion to taxpayers

    Update 4/19/24: The Senate Finance subcommittee investigating the $1.8 billion issued an interim report on Tuesday. It recommends a forensic audit of the bank account in question, legislation to make the State Auditor more independent, and a constitutional amendment to make the Treasurer an appointed position instead of being elected by...
  • Proposed SC budget exceeds recommended limit, could do more for tax relief

    Update 3/13/24: The House on Wednesday passed an initial draft of the next state budget, unchanged from the summary below. The week saw healthy debate and commendable efforts from lawmakers to challenge spending requests, including several noted in this report. We encourage the Senate, which goes next in the process, to utilize...