COLUMBIA, S.C. — South Carolina lawmakers returned to the State House on Tuesday to kick off the 2025-2026 legislative session, and Governor Henry McMaster unveiled his $41.6 billion executive budget for the upcoming fiscal year on Monday.
The governor's spending plan includes teacher raises, an accelerated income tax cut, and substantial disaster relief funding for those impacted by Hurricane Helene.
“If we're going to educate our children, if South Carolina's future is going to be bright, as fast as things change, we must have educated young people,” McMaster said.
His budget proposes raising the starting salary for teachers to $50,000 with $200 million. Additionally, he supported extra funding for the Education Scholarship Trust Fund, which provides vouchers for private school tuition.
A Senate plan would use lottery money to support the program after the Supreme Court struck it down. McMaster's executive budget rolls out a plan to generate more money using the lottery by eliminating the cash-only requirement for lottery ticket purchases, estimating the change could generate $52 million in new revenue.
"Over the years, people have moved from cash to credit cards and debit cards, and a lot of vendors do not even allow cash payment. So we're trying to keep up with the change in the times and not let the program, which was carefully thought out there was some in favor and some not in favor," McMaster said.
The governor’s budget also accelerates the state's goal of reducing the top income tax rate to 6% over the years. Under McMaster's plan, the final cut would happen this year, lowering the state’s top rate from 6.2% to 6%, which he says would save taxpayers $193 million.
"We should not stop there," said McMaster. “We should continue cutting or eliminating the personal income tax rate as much as we can and as fast as we can."
Disaster relief was another major focus, with hundreds of millions allocated for Hurricane Helene recovery efforts. The plan includes $50 million for the Department of Transportation to repair damaged roads and $40 million to replenish the state’s disaster relief fund.
McMaster also proposed $150 million to create a disaster relief program under the South Carolina Emergency Management Division.
“This grant program will allow local governments, public utilities, and charitable organizations to apply for disaster recovery funds denied by the federal government or not meeting FEMA thresholds,” he says.
The governor is asking lawmakers to include a budget proviso for a feasibility study on burying the state’s power lines, a project to improve storm resilience.
Now that McMaster’s budget is in lawmakers’ hands, the House Ways and Means Committee will begin drafting its version next month. Both chambers of the legislature will pass their proposals and negotiate a final plan, which will return to the governor for vetoes before going into effect in July.