​House and Senate Reach Agreement on FY2022-2023 Budget

Last Friday, House and Senate negotiators announced a compromise agreement on the state’s record FY2022-23 budget (H.5150) as well as a tax relief package (S.1087) that improves South Carolina’s overall tax climate. Click here to hear the update on WLTX news station’s video update on the budget meetings.  Many of the UCC (Upstate Chamber Coalition) legislative priorities were funded in the compromise version of the budget including:


•  $350 million allocated to the South Carolina Ports Authority to continue the development of the Naval Base Intermodal Facility and a container barge infrastructure 
    project.
•  $120 million for the South Carolina Department of Transportation to obtain matching money from the federal Infrastructure Investment and Jobs Act.
•  Funding to the Department of Education to increase the starting salary for teachers from $36,000 to $40,000.
•  $39 million in funding to the SC Technical College System for workforce development scholarships that will allow SC students to pursue a degree or certificate in high-
    demand fields at no cost.
•  $642,500 allocated to the Department of Employment and Workforce for operating costs to continue the Be Pro Be Proud initiative through FY2023.


The final tax relief package includes an immediate reduction in the state’s top marginal individual income tax rate from 7% to 6.5%, with an additional .5% reduction to 6% over the next five years with triggers to prevent the automatic annual reduction if the state’s general fund revenue does not increase. The package also includes an immediate reduction in the manufacturing property tax rate from effectively 9% to 6% while also fully funding local governments for any lost revenue as a result of the reduction. This reduction greatly benefits smaller manufacturers that are not eligible for discretionary local incentives. Lastly, the compromise includes a $1 billion, one-time taxpayer rebate for all income taxpayers that will be distributed in either November or December.
 
The General Assembly returned this week to vote on the final versions of the budget and S.1087, along with other outstanding conference reports.  The final budget revisions will be headed to the Governor’s desk for approval.