Pay raises for SC teachers, state employees appear settled in initial Senate budget
A $15.3 billion spending plan approved Wednesday by South Carolina Senate budget writers would lock in minimum teacher salaries, state employee raises and how much money colleges and universities receive to keep tuition rates frozen.
The Senate Finance Committee passed its $15.3 billion spending plan raises the starting teacher pay to $50,500 a year, up from $48,500. The $150 million more annually for teacher salaries also would raise the every cell of the minimum teacher salary schedule, which sets educator pay based on years of experience and education level by $2,000. The Senate amount for teacher pay matches the House budget.
The full state Senate is scheduled to have its floor debate on the budget the week of April 21. After approval, the budget with changes returns to the House for further deliberation and eventually to a budget conference committee to hammer out the final differences.
The proposed Senate spending plan also accounts for the state’s income tax cut, and money for a proposed property tax cut by increasing the senior homestead exemption.
The tax cuts would keep $556.4 million a year out of state coffers.
The Senate Finance spending proposal includes a $66.9 million to pay for a 2% pay raise for state employees, and an additional $33.9 million a year toward the state health plan. It would be enough to make sure those on the health plan don’t see a premium increase. State colleges and universities would receive nearly $33 million to keep tuition rates frozen under the Senate Finance proposal. It’s an amount that matches the House plan.
The budget includes $175 million for a comprehensive cancer hospital at MUSC, another item the House approved.
In order to meet requirements in the One Big Beautiful Bill to make sure people who need assistance are receiving it, the Finance Committee also agreed to spend $34 million a year on the state’s SNAP program, like the House proposed.
Both budgets also include spending $10.6 million for a voting system upgrade for the Election commission.
Differences in the spending plans
The Senate budget committee’s spending plan does have differences in how much to spend on Medicaid and Medicare services.
The Senate Finance proposal only puts $99.6 million in new annual money for Medicaid’s maintenance, slightly less than the House’s $102.6 million.
Senate budget writers only want to spend $15.7 million on Medicaid premiums for elderly and disabled Medicaid recipients where the House proposed spending $53.1 million.
Another area that most likely will have to be worked out during a conference committee is whether to agree to spend $32 million for the Captain Sam’s Spit settlement. The House wants to settle the yearslong litigation, but the Senate Finance plan only placed $1 on the line for the settlement. Last month, Senate Finance Committee Chairman Harvey Peeler indicated he did not want to settle the case just yet.
The House and Senate also disagree on operating costs for each chamber.
Senators want to spend $750,000 more a year on operations, a cost that was not funded in the House budget. The House wanted to spend $8.3 million on operating and security upgrades. The Senate budget only includes $1.
The two budgets also differ on how much to spend on transportation projects. The Senate Finance budget puts $420 million toward transportation projects, when including projects for specific local governments. The House budget has $500 million for transportation work.
Senate budget writers also decided not to go forward with spending more money to ensure every student has a free breakfast at school, regardless of income. The House approved $8.7 million more a year for the free breakfast program.
