As lawmakers reconvened in Columbia this week, pivotal discussions on the 2025-2026 state budget took center stage, alongside significant legislative developments impacting businesses, education, and public safety. Here’s an overview of the key events shaping South Carolina politics over the past week:
Budget Deliberations Commence
The South Carolina House is set to begin floor debates on the state’s 2025-26 budget next week. Preliminary discussions kicked off with a Thursday presentation from the House Ways and Means Committee. The proposed budget emphasizes three guiding principles: meaningful tax cuts, smart investments, and responsible budgeting.
Key Budget Highlights:
Tax Relief: The budget proposes over $1 billion in tax relief, including $211 million in income tax cuts and $814 million in property tax reimbursements.
Education Investment: Public school teachers are slated to receive a $1,500 annual salary increase, raising the state’s minimum salary to $48,500—still $1,500 short of Governor Henry McMaster’s proposed $50,000 minimum.
Infrastructure & Public Services: Additional funds are allocated for disaster relief, behavioral and home health care, school resource officers, and enhancements to state roads and bridges.
Higher Education & State Employees: The proposed budget maintains a tuition freeze for current students at public colleges and universities, while future students may face tuition increases. Additionally, state employees are expected to face a $36.76 monthly increase in health insurance premiums.
Fiscal Responsibility: The budget includes an infusion of over $100 million into South Carolina’s “rainy day” reserves, increasing the state’s reserve funds to approximately $1.2 billion, reinforcing financial preparedness for future challenges.
Key Legislation Advances
Liquor Liability Bill: In a notable display of bipartisanship, the House unanimously passed H. 3497, the liquor liability bill. This legislation addresses escalating liability insurance costs, which have led to the closure of numerous bars and restaurants. The bill proposes the creation of a liquor liability risk mitigation program, allowing certain establishments to qualify for reduced insurance requirements by implementing responsible alcohol server training. The bill now moves to the Senate.
Hands-Free Driving Bill: The hands-free driving bill, H. 3276, was amended and moved out of committee on Tuesday after weeks of work. This law would expand the existing no-texting-and-driving rule to prohibit driving while holding a phone. The law would not apply if the vehicle is stopped or parked. First offenses would incur a $100 fine, while second and subsequent offenses (within three years) would result in a $200 fine plus two points on the driver’s license. If signed into law, it would take effect one year after the governor’s signature, with a 90-day warning period.
Looking Ahead
With the Senate set to reconvene next Tuesday, all eyes will be on the House as the budget debate takes center stage.
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