South Carolina

South Carolina

Budget Cycle

Governor Submits Budget
January (within 5 days after session begins)

Fiscal Year Begins
July 1

Governor Signs Budget 
May (5 days after adopted by legislature)

Budget Links

FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (proposed)

Proposed Budget - Fiscal Year 2025

On January 5, South Carolina Governor Henry McMaster proposed a fiscal 2025 budget that recommends $40.0 billion in all funds, an increase of $1.1 billion, or 2.9 percent, over fiscal 2024. The general funds portion of the budget totals $12.3 billion, an increase of $636.6 million, or 5.5 percent, over fiscal 2024. The governor’s budget assumes net general fund revenues of $12.3 billion, an increase of 5.5 percent over fiscal 2024. The budget provides $54.3 million in non-recurring funds to increase the state’s rainy day fund to $1.2 billion, which is 10 percent of the general funds available in the General Appropriations Act, and is the largest rainy day fund in state history. In tax policy changes, the budget proposes a $2,000 nonrefundable state income tax credit for every active-duty law enforcement officer and first responder employed by a public entity, providing $39.5 million in tax relief. The budget also includes $99.8 million to decrease the individual income tax rate to 6.3 percent for tax year 2024 after meeting the statutory threshold for revenue growth, automatically triggering the tax reduction.

Proposed Budget Highlights 
The governor’s budget for fiscal 2025 provides tax relief and makes targeted investments in education, economic development, public safety, veterans, and health and social services, setting the stage for continued economic success in South Carolina.


  • $250.0 million recurring funds to increase the State Aid to Classrooms formula to fund student enrollment growth and increase the minimum starting teacher salary from $42,500 to $45,000. 
  • $30.0 million non-recurring funds for the Education Scholarship Trust Fund, which provides scholarships of up to $6,000 to eligible students for qualifying expenses to attend a public or private school of their choice. 
  • $21.1 million recurring Education Improvement Act funds for increased enrollment in the full-day 4K program.
  • $13.4 million recurring funds to add 175 school resource officers, ensuring funding for a certified law enforcement officer in every school. 
  • $285.7 million investment in undergraduate lottery scholarship programs.
  • $80.0 million in lottery funds for need-based grants to provide tuition assistance for every eligible student.
  • $49.8 million in recurring funds to public institutions of higher education to mitigate a fifth consecutive year of tuition freezes.

Public Safety and Law Enforcement 

  • $15.0 million non-recurring and $8.0 million recurring funds to support the Department of Corrections’ cell phone interdiction initiative.
  • $17.8 million in new recurring funds for compensation to recruit and retain law enforcement officers across multiple state agencies. 
  • $1.0 million non-recurring and $879,300 recurring funds to expand the state’s cybersecurity capabilities. 

Health Care and Human Services

  • $44.7 million recurring funds to maintain patient access to doctors and medical professionals and $13.8 million recurring funds to maintain patient access to behavioral health professionals by increasing provider reimbursement rates. 
  • $36.1 million recurring funds for Medicaid maintenance of effort.
  • $5.0 million recurring funds for retention and recruitment of critical nursing professionals. 
  • $10.0 million non-recurring funds to support a pilot project to reduce homelessness through a public-private partnership to provide a comprehensive resource center and services.
  • $14.4 million recurring funds to increase provider rates and enhance placement stability for children and youth through the Department of Social Services.
  • $5.0 million non-recurring funds to support working families childcare scholarships. 

Economic Development 

  • $95.0 million lottery funds to support South Carolina Workforce Industry Needs Scholarships (SC WINS).
  • $55.0 million non-recurring funds to invest in land acquisition for future economic development for the State Ports Authority.
  • $50.0 million non-recurring funds to support electric vehicle training institutes at technical college campuses. 
  • $50.0 million non-recurring funds to expand commercial airports.
  • $30.0 million surplus lottery funds for high-demand job skill training equipment.

Veterans and Military Communities

  • $49.0 million non-recurring funds for capital improvements to veterans nursing homes.
  • $25.5 million recurring funds to support the operations of four existing veterans nursing homes and the fifth facility under construction.
  • $6.3 million non-recurring funds to expand the State Emergency Operations Center, which includes expansion of the SC National Guard’s Joint Operations Center.

Conservation and the Environment

  • $33.0 million to invest in the preservation and conservation of culturally and environmentally significant habitats.
  • $10.0 million non-recurring funds to support the Disaster Relief and Resilience Reserve Fund.
  • $13.0 million non-recurring funds to support new state park development ($5.0 million), existing park renovations ($5.0 million), and park revitalization grants ($3.0 million).

State Employees and Governance

  • $44.0 million recurring funds to support retention and recruitment initiatives for critical agency personnel across all state agencies. 
  • $107.6 million recurring funds for the state health plan and to ensure no employee premium increase for the twelfth consecutive year. 
  • Proviso language to close enrollment in the South Carolina Retirement System to new members after December 31, 2024, and instead have them join the State Optional Retirement Program to help address the state’s unfunded pension liabilities.