Fate of $1,500 bonus for SC state employees heads to the negotiating table in budget talks
State employees hoping to receive a one-time $1,500 bonus will have to rely on House budget writers to continue to advocate for the money.
Senators this week adopted a $12.6 billion spending plan that does not include a $1,500 bonus for state employees, something proposed by the House as part of its $13.9 billion spending plan.
Whether state employees see a bonus, which would cost $45 million, will have to be worked out with the House when the two chambers hold a conference committee, expected to begin next month, to reconcile the two spending plans.
But state workers will see an increase in their regular pay.
The Senate agreed with the House on a 3% across the board raise for state employees, as well as spending an additional $101 million to cover wellness visits for state workers and ensure they won’t pay higher health and dental insurance premiums on the state health plan.
The lack of a bonus comes as senators approved a $1 billion tax rebate to go along with a $1 billion tax cut pushed by Senate Finance Committee Chairman Harvey Peeler, R-Cherokee.
The rebate plan would send between $100 and $700 back to income tax filers depending on their income tax liability.
House members also approved an income tax cut as part of the chamber’s budget deliberations. The House plan would cut $600 million in taxes the first year. It would eventually increase to a $1 billion tax cut over several years as long as the economy and as long as revenues to the state grow by enough money. The House plan did not include a rebate.
Peeler called the Senate’s spending plan “a budget for the people.”
“It includes $2 billion in historic tax relief for everyday South Carolinians while ensuring the services for our citizens are properly funded,” Peeler said when introducing the Senate’s spending plan on the floor. “This budget makes significant investments in critical services such as mental health care and the Department of Social Services, helping to protect the most vulnerable of our state. All of this was achieved with our primary focus remaining on the taxpayer.”
