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

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (proposed)
FY2019 (enacted)
FY2018 (enacted)

Proposed Budget - Fiscal Year 2023

On January 10, South Carolina Governor Henry McMaster proposed a fiscal 2023 budget that recommends $34.36 billion in all funds, an increase of $3.29 billion or 10.59 percent over fiscal 2022. A contributor to the all funds budget increase is the 20.37 percent increase in federal funds over the current year. The general funds portion of the budget totals $10.06 billion for fiscal 2023, an increase of $789.23 million or 8.51 percent. General fund revenues are projected at $10.06 billion, an increase of 8.51 percent over fiscal 2022. The General Reserve Fund is required to be 5 percent of the revenues of the most recently completed fiscal year; the required $522.99 million for fiscal 2023 is fully funded. The budget also provides $500 million to the “rainy day” reserve fund; adding in required Capital Reserves of $209.19 million, reserve funds total $1.23 billion. The governor also recommends that the General Assembly ensures each year a minimum balance in the rainy day fund of 10 percent of the state’s General Fund budget. In his proposed budget, the governor recommends two tax policy changes. First, a 1.0 percent rate reduction over five years for all personal income tax brackets, starting with an immediate $177 million cut. Second, the governor recommends eliminating all state income taxes on the retirement pay of retired military veterans and first responders.  

Proposed Budget Highlights 
In the fiscal 2023 executive budget, the governor proposes using state funds to lay a foundation for future growth – by investing in education, public safety, job and community-supporting infrastructure, and continued savings to guard against future economic uncertainties. The governor also released his recommendations for spending $2.4 billion in federal American Rescue Plan Act (ARPA) funding.

Education Investments
  • $120 million in recurring funds to increase the State Aid in Classrooms allocation while beginning the process to transform the K-12 school funding system, including consolidating line-item appropriations and simplifying funding formulas.
  • Increase the state minimum teacher salary from $36,000 to $38,000.
  • $100 million in recurring and non-recurring funds for the purchase of instructional materials.
  • $60.2 million in recurring and non-recurring funds for charter schools.
  • $35 million in non-recurring funds set aside for the ARPA Maintenance of Equity requirement and Maintenance of Effort requirement for the Individuals with Disabilities Education Act (IDEA).
  • $12 million in non-recurring funds for retention bonuses for school bus drivers.
  • $20.1 million in recurring funds for a higher education tuition freeze.

Workforce and Community Infrastructure Investments

  • $496.9 million in non-recurring funds to expedite road and bridge projects at the state department of transportation.
  • $300 million in non-recurring funds for the Navy Base Intermodal Facility at the state’s port authority.
  • $150 million in non-recurring funds for economic development infrastructure at the state commerce department.
  • $46.7 million for 2.0 percent merit-based pay increases for state employees.

Public Safety and Law Enforcement Investments

  • $30.9 million in recurring funds across agencies for pay and step increases, and a 2.0 percent merit-based pay increase, for law enforcement officers.
  • $17 million in non-recurring funds for the Emergency Response Task Force to aid local fire departments during significant disasters or events.
  • $8.8 million in recurring funds to annualize funding for the school resource officer program.
  • $1.4 million in recurring funds for recruitment and retention at the Department of Probation, Parole and Pardon Services.

ARPA Investments

  • $500 million for rural water and sewer infrastructure
  • $300 million for broadband access and expansion
  • $660 million for interstate projects
  • $300 million for the Office of Resilience for environmental mitigation and remediation
  • $250 million to replenish the Unemployment Insurance Trust Fund
  • $124 million for Workforce Scholarships for the Future
  • $100 million for a new public health laboratory
  • $87 million to harden state agency IT infrastructure
  • $50 million for agribusiness marketing and initiatives
  • $80 million for tourism recovery and motorsports marketing/initiatives
  • $10 million for Guidehouse grant management