Enacted Budget – Fiscal Year 2026
South Carolina’s fiscal 2026 budget became effective June 3 following eleven line-item vetoes from Governor Henry McMaster. The total state budget, authorized by the fiscal 2026 appropriation act, is $39.2 billion, a decrease of 2.7 percent, or $1.1 billion, compared to fiscal 2025. This decrease includes a downward adjustment to federal funds of $1.1 billion. The general fund portion is $13.2 billion, an increase of 6.7 percent, or $825.8 million, over fiscal 2025. The May 2025 revenue forecast for fiscal 2026 is $13.7 billion in net general fund revenues, an increase of 0.23 percent over fiscal 2025. The General Reserve Fund, or rainy day fund, was required to be 6.0 percent of the general fund revenues of the most recently completed fiscal year for fiscal 2025; the formula was fully funded for fiscal 2025 at $739.6 million.
The budget continues to build on progress made by the state in early childhood education, investing in teachers, school safety, and providing access and choice for parents and their children. In education the budget invests in full-day four-year-old kindergarten, provides funding to support a school resource officer in every public school, and provides funds for the Education Scholarship Trust Fund. The budget also increases the minimum starting teacher salary to $48,500. In higher education the budget includes the sixth straight year of a college tuition freeze for in-state students, provides needs-based financial aid, and allocates funds for the South Carolina Workforce Industry Needs Scholarships program at the state’s technical colleges. Infrastructure investments supported in the budget include funds for bridge repair and replacement. The budget invests in public safety by providing additional funds for pay raises, overtime, and hiring new officers at the state law enforcement and criminal justice agencies, while also providing additional new funding to expand cell phone and contraband interdiction at correctional facilities along with hiring new correctional officers, increasing medical and mental health services, and paying for deferred maintenance. Other priorities funded in the budget include additional funds for disaster relief (including creation of the South Carolina Public Assistance Program), along with preservation and conservation of land and cultural resources. The budget also continues income tax cuts, accelerating the scheduled individual income tax rate reduction to 6.0 percent.