South Carolina Legislative Recap: Week of April 7, 2025

This week at the South Carolina State House, legislative activity moved at a slower—but no less significant—pace, as attention turned from the House chamber to the Senate Finance Committee room.

The Senate was notably absent from the floor, allowing its Finance Committee the space and time to finalize its $14.4 billion budget plan. That proposal, which heads to the full Senate the week of April 22, comes with a headline-grabbing twist: in a state budget process where earmarks have typically driven debate—with over $400 million in earmarks last year alone—the Finance Committee is proposing just one. Yes—just one.

That lone earmark? A $300 million line item to fast-track South Carolina’s already-scheduled income tax cut. Under current law, the state’s top income tax rate was scheduled to drop from 6.2% to 6.1%. But with the recent collapse of the House’s more ambitious—and controversial—standalone tax reform bill, which aimed to slash the rate to 3.99% while raising taxes for most filers, the Senate pivoted. Rather than pushing a sweeping overhaul, senators chose to accelerate the existing plan, dropping the top rate to a flat 6%. (Source)

But that choice came with trade-offs. The Senate’s budget proposal cuts $600 million in previously approved agency requests—reductions Finance Committee staff say were necessary to balance the budget in a leaner year. With an overall spending plan that's $2 billion smaller than last year's, South Carolina is poised to pass its smallest state budget since 2012. (Source)

In the background of the tax shift is the broader elimination of earmarks—legislator-directed funds for local projects. Last year’s budget, buoyed by leftover COVID relief dollars, included more than $400 million in earmarks.

When the Finance Committee advanced its version of the budget bill (H. 4025) and the Capital Reserve Fund bill (H. 4026), House Ways and Means Chair Bruce Bannister (R-Greenville) and Senate Finance Chair Harvey Peeler (R-Cherokee) issued a rare joint statement, praising the move toward a leaner, more transparent approach.

What’s Next?

· The House will be on furlough next week, giving members a brief recess before the final sprint.

· The Senate Finance Committee’s version of the state’s $14.4 billion budget plan is set to hit the floor the week of April 22.

· All roads lead to Sine Die on May 8, when the 2025 legislative session officially adjourns.