The S.C. House approved a $13.8 billion budget for 2023-24 that focused on big pay raises for teachers and state employees. The annual spending plan, generally considered the biggest legislative priority for each year, now goes to the Senate for consideration.
Under the budget, which was adopted Wednesday after sometimes contentious interruptions between right-wing Republicans in the S.C. Freedom Caucus, called for starting salaries for teachers and state employees to go up by $2,500 a year. Raises would help deal with hiring crises in teaching and other jobs, such as law enforcement and corrections.
The House proposal, called a “transformational budget” by House Speaker Murrell Smith, would bump pay by that amount for state employees who earn less than $83,000, while those who earn more could get a 3% raise. The amounts are different to help all deal with the costs of inflation, officials said.
All totaled, the House budget calls for $124 million in annualized raises, which The State newspaper reported was the largest in South Carolina history. Other big ticket highlights in the budget:
- $1.3 billion: Cost of tax incentives to lure Scout Motors to the state. It is expected to employ 4,000 people in Richland County.
- $380 million: Increase in academic college and workforce development scholarships.
- $200 million: Extra money to the state Department of Transportation to accelerate bridge repair work.
- $200 million: Investment in road, water and sewer infrastructure to attract new businesses.
- $261 million: Added funding for boosted teacher pay from above via the state’s aid to classrooms. The spending is expected to boost a starting teacher’s salary to $42,500.
- $196 million: Increase costs to the state’s share of Medicare and Medicaid health care spending due to higher programmatic costs.
- $121 million: Money to counterbalance an insurance premium hike so state employees don’t have to pay more for health insurance.
- $96 million: Cost of a second year of a phased-in income tax cut.
- $84 million: Cost to freeze tuition rates for students at S.C. colleges, universities and technical colleges.
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