South Carolina

South Carolina

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FY2024 (proposed)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (proposed)
FY2020 (enacted)
FY2019 (enacted)

Proposed Budget - Fiscal Year 2024

On January 6, South Carolina Governor Henry McMaster proposed a fiscal 2024 budget that recommends $36.4 billion in all funds, an increase of $1.7 billion or 4.9 percent over fiscal 2023. The general funds portion of the budget totals $11.4 billion for fiscal 2024, an increase of $1.02 billion, or 9.9 percent, over fiscal 2023. Net general fund revenues are projected at $11.4 billion, an increase of 8.3 percent over the prior year. The governor’s proposed budget includes a surplus of $3.8 billion, comprised of $1.02 billion in recurring revenues and $2.8 billion in non-recurring revenues. A constitutional amendment approved by voters in November 2022 raises the General Reserve Fund contribution by one half percent annually until it reaches 7 percent, up from the previous 5 percent. The fiscal 2024 budget fully funds the required 5.5 percent contribution of $715.2 million and also sets aside $500 million into a Rainy Day Fund. The budget voluntarily increases the minimum balance of the Rainy Day Fund from 7 percent to 10 percent, resulting in a balance of more than $1.2 billion. 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 $38.4 million in tax relief.

Proposed Budget Highlights 
The governor’s fiscal 2024 proposed budget prioritizes fiscal responsibility and transformative investments in education, infrastructure, and public safety while providing tax relief for South Carolinians.
 

Education

• $254.0 million recurring funds for State Aid to Classrooms to increase the State Minimum Teacher Salary Schedule by $2,500 per cell and to fund student enrollment increases. Funding supports a new minimum starting teacher salary of $42,500.
• $132.5 million non-recurring funds for teacher retention payments of $2,500.
• $27.3 million recurring and non-recurring funds to hire additional school resource officers, adding officers in 188 schools.
• $20.0 million non-recurring funds for teacher recruitment and retention initiatives targeting hard-to-staff subject areas and high-need schools.
• $80.0 million in lottery funds for need-based grants at the Commission on Higher Education.
• Proposed a tuition freeze for in-state students at public colleges, universities and technical colleges and recommended $43.0 million for tuition mitigation.

Public Safety and Law Enforcement Investments

• $21.5 million to build on last year’s $40.0 million investment for law enforcement and criminal justice agency recruitment and retention pay raises.
• $3.6 million recurring and non-recurring funds for the creation of the Center for School Safety and Targeted Violence.
• $13.0 million non-recurring funds for facility maintenance and critical security upgrades at juvenile justice facilities.
• $5.5 million recurring funds for evidence-based interventions in community settings for at-risk youth.
• $4.1 million recurring funds for additional circuit and family court judges, $11.7 million recurring funds for additional assistant solicitors, and $8.9 million recurring funds for additional public defenders.

Health Care and Human Services

• $117.0 million recurring funds for the annualizations of the decreasing FMAP rate and increased costs associated with dually eligible individuals qualifying for Medicare.
• $36.7 million recurring funds to maintain patient access by increasing provider reimbursement rates.
• $20.5 million recurring funds to maintain and increase access to foster care by increasing provider rates.
• Approximately $45.0 million to the Department of Mental Health for recruitment and retention of mental health professionals, provision of inpatient services, and increased access to crisis continuum of care services and community-based treatment services.

Economic Development and Infrastructure

• $500.0 million non-recurring funds for announced economic development projects in lieu of debt financing.
• $200.0 million non-recurring funds to develop megasites and enable the state to compete for large-scale economic development projects.
• $20.0 million non-recurring funds for local economic development grants.
• $75.0 million non-recurring funds to recruit agribusiness to the state via an economic development matching grant program.
• $78.0 million in lottery funds to expand a workforce scholarship program through technical colleges that enable participants to earn an industry credential in high-demand careers.
• $550.0 million recurring and non-recurring funds for bridge infrastructure.
• $380.0 million in American Rescue Plan Act funds for rural water and sewer infrastructure.

State Employees

• $78.0 million recurring funds for state agency recruitment and retention initiatives for critical personnel.
• $2.0 million non-recurring funds for a marketing campaign to recruit highly-qualified individuals for critical need positions within state government.
• $2.0 million non-recurring funds for signing bonuses for critical need positions in state agencies with a maximum award of $2,500.
• $121.5 million recurring funds for the State Health Plan to ensure no employee premium increase.
• $40.1 million recurring funds to pay for the 1 percent pension increase that had been suspended due to the COVID-19 pandemic and proposed the state pension plan be closed to new beneficiaries as of December 31, 2023 and instead new state employees be enrolled in a defined contribution plan.

Proposed Budget Information
Fiscal Year 2024 Executive Budget 

Statement of Revenues 

Budget Presentation 

Governor’s Press Release