Taxes and Spending

Budget breakdown: The S.C. House's 2026 budget

The South Carolina House has passed the FY 2026 budget with plenty of fireworks during debate. The proposed spending plan – which would be the largest in state history, taking effect on July 1 – puts billions of dollars on the line. With agencies seeking budget increases and new spending requests piling up, where are your taxpayer dollars going?  

Sam Aaron

Written by
March 14, 2025

  • Budget breakdown: The S.C. House's 2026 budget

    The South Carolina House has passed the FY 2026 budget with plenty of fireworks during debate. The proposed spending plan – which would be the largest in state history, taking effect on July 1 – puts billions of dollars on the line. With agencies seeking budget increases and new spending requests piling up, where are your taxpayer dollars going?  
    Sam Aaron

    Written by
    March 14, 2025

  • Big-ticket items in higher ed budget requests

    State universities have completed their budget hearings with the House Ways and Means Higher Education Subcommittee, and some of their requests carried eye-popping price tags: 
    Brendan Connors

    Written by
    March 11, 2025

  • Major tax cuts on the table: Will S.C. eliminate state income tax?

    Lawmakers have filed multiple bills this legislative session aimed at reducing or eliminating state income tax. Expediting a decrease in state income tax rates will position South Carolina to be economically competitive amidst significant population growth.   Rather than relying on corporate welfare to attract industry, South Carolina should utilize...
    Neil Wolin

    Written by
    March 07, 2025

  • 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...
    Sam Aaron

    Written by
    January 17, 2025

  • 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...
    Sam Aaron

    Written by
    January 06, 2025

  • 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...
    Neil Wolin

    Written by
    December 18, 2024

  • 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...
    Sydney Forte

    Written by
    August 15, 2024

  • 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. 
    Sam Aaron

    Written by
    August 07, 2024

  • 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...
    Bryce Fiedler

    Written by
    July 12, 2024

  • 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,...
    Bryce Fiedler

    Written by
    May 07, 2024