Bonus now in question for SC’s state employees who are slated to get pay raises in 2022
State employees would get a pay raise under the Senate budget plan, something the chamber’s budget writers and the House agree on.
But a $1,500 bonus for each state employee, meant as a reward for their work during the pandemic, is now in question.
Senate budget writers approved a 3% raise for state employees, the same as the House did last month, but did not include a proposed bonus as part of a $12.4 billion spending plan approved by the Senate Finance Committee this week.
The proposed spending plan is lower than the $13.9 billion spending plan approved by the House, which included $45 million to pay for the bonus.
The lack of a bonus comes as Senate budget writers have a less money to spend than the House because the upper chamber proposed a larger tax cut this year.
House members approved an income tax cut that would keep $600 million out of state coffers this year. The Senate tax cut would keep $1 billion out of state coffers and includes a one-time $1 billion rebate to income tax filers.
“We’re putting all of the citizens and taxpayers first with the tax reductions,” said Senate President Thomas Alexander, R-Oconee, who sits on the Senate Finance Committee. “So they will be benefiting from that is as well. So it’s just a different approach.”
Ultimately, the size of the tax cut and whether to include a rebate will need to be worked out between the two chambers.
State employees also won’t see an increase in how much they pay for health insurance.
Senators followed the House’s recommendation to include $101 million for the state’s health plan to ensure state employees don’t see an increase in their premiums.
Among the other items included in the Senate budget proposal is raising the starting teacher pay to $38,000 — instead of the $40,000 being pushed by the House, outgoing state Superintendent of Education Molly Spearman and teachers groups.
The Senate’s education spending proposal is meant to give school districts more flexibility in how they spend the additional $227 million being sent to public schools.
Other highlights in the Senate spending plan include:
▪ $350 million for the Port of Charleston for barge and railroad operations.
▪ $38.1 million to recruit and retain law enforcement and corrections officers.
▪ $49 million for colleges and universities to hold tuition and fees at current levels.
▪ $39 million for the Department of Social Services to meet the requirements of the Michelle H. settlement.
“We’re addressing the needs of the agencies,” Alexander said when asked if the state should be spending more to address more issues in the state.
He added he believed taxpayers deserved to have a share of the increased revenues in the state.
“They can spend that money extremely well in the economy and do things that they see appropriate for them,” Alexander said. “Without their help, we wouldn’t be having a budget and having the revenue.”
