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.