Putting millions in SC pension system locked into state budget
The S.C. Senate approved spending $145 million Thursday from the state’s general fund to cover state agencies’ higher costs for the state pension retirement system.
That money also will help non-state agencies — cities, counties and schools — pay increased pension costs for their employees’ retirements.
Effective July 1, those public-sector employers, financed by taxpayers, will start paying $12.60 for every $100 an employee earns. Without the state money, they would have had to paid $1 more for every $100.
That aid from state government is expected to continue as employer rates increase to $18.60 for every $100 paid employees over the next six years.
Still, the Senate approved spending $5 million less than the S.C. House on the pension system, excluding chipping in for the employer cost for state workers who are paid with federal dollars. The differences between the House and Senate spending plans will be worked out after the bill returns to the House.
The state’s general fund budget for the fiscal year that starts July 1 is roughly $8 billion. The budget includes an added $500 million due to higher state revenues.
Senators approved spending:
▪ $75 million for Hurricane Matthew damages, roughly $7 million less than the House approved
▪ $69 million in additional money for K-12 schools, based on their student population. The added money raises state spending to $2,435 a student, roughly $500 below the level set by state law. That is about $30 million more than the House approved.
▪ $46 million in added money for building improvements at S.C. schools; most of that money would go to poor schools that have sued the state, saying they need more money. That is roughly half of what the House approved.
▪ $16 million in new funding for S.C. colleges, including $2.4 million for the University of South Carolina. The House did not budget any added money for colleges.
▪ $14 million in added money to buy school buses, $5 million more than the House approved
▪ $1 million more for tax credits for donors to a scholarship program that pays for special-needs students to attend private school. The House did not include any added money for the program.
Cassie Cope: 803-771-8657, @cassielcope
S.C. House will need to sign off on possible pay raise
The S.C. Senate approved a possible one-time bonus of up to $500 for state employees who make less than $50,000 a year.
The bonus is contingent on the state closing its books with a surplus for its budget year that ends June 30.
The S.C. House, which did not include a pay raise or bonus for state employees, would have to sign off on the bonus.
Some state employees — Corrections and DJJ officers— are guaranteed a raise.
The Senate approved spending $5.4 million to give Corrections Department officers a $1,000 raise. The House approved spending $4 million for a $750 pay raise for Corrections officers.
Both the House and Senate approved spending about $500,000 for a $750 raise for Department of Juvenile Justice officer.
The Senate’s budget proposal also includes almost $250,000 for raises for instructors at the S.C. Criminal Justice Academy. The House did not include that raise in its budget proposal.
This story was originally published April 6, 2017 at 1:33 PM with the headline "Putting millions in SC pension system locked into state budget."