The House passed its version of the state budget just after midnight on Tuesday and went home for the week. The Senate continues to work on tort reform legislation
Tax
This week, the Senate adopted S. 176 (Senator Climer) regarding regulations for Certified Public Accountants (CPA) and Public Accountants. The bill modernizes the CPA Practice Act, removes barriers to mobility and extends the time to pass the exam to 36 months. The bill now goes to the House for consideration.
On Tuesday, a Subcommittee of the Senate Finance Committee adopted S. 234 (Senators Leber, Fernandez, Elliott and others) that would exclude tips from gross income from state income taxes. The bill now goes to the full committee for consideration.
Budget
After two full days of floor debate, the House adopted the FY24-25 General Appropriations Act H. 4025 and the Capital Reserve Fund H. 4026 just before midnight on Tuesday. A few minutes after midnight, on a new legislative day, they gave the bill third and final reading and went home for the week. Committee Chairman Bruce Bannister (R-Greenville) noted that this budget is fiscally responsible, provides smart investments and meaningful tax cuts. The $14 billion general fund budget includes $666 million in “new” recurring revenue and an estimated one-time budget surplus of about $1.25 billion.
The debate was contentious at times, as House members associated with the Freedom Caucus drafted over 100 amendments aimed at cutting the budget by $1 billion. That set off numerous acrimonious exchanges as House Republicans and Democrats accused the Freedom Caucus of orchestrating a political stunt and not being serious about governing. In the end, not a single amendment offered by the Freedom Caucus was adopted and the budget bill passed intact from the committee-passed version. Specific items of interest include:
- $1 billion for tax relief, including over $800 million for homestead exemption and $200 million to continue cutting the state’s personal income tax, dropping the rate from 6.2% to 6%;
- $112 million to raise starting teacher minimum salaries by $1,500 to $48,500;
- $200 million to the South Carolina Department of Transportation (SCDOT) for bridge maintenance and repair;
- $150 million for the neurological health center at USC;
- $60.4 million to maintain health services covered by Medicaid;
- $66 million for a 2% state employee pay increase; and
- $90 million for SC WINS workforce scholarships.
In response to Hurricane Helene:
- $50 million to the Department of Transportation for unreimbursed costs related to Hurricane Helene;
- $38 million to the Office of Resilience to replenish the Disaster Relief and Resilience Reserve Fund; and
- $222 million to match federal FEMA funds.
The budget now goes to the Senate, where state agencies continued appearing before the Senate Finance subcommittees this week with their budget requests, including the University of South Carolina, the State Ports Authority, the Department of Transportation and the Department of Employment and Workforce.
Ways and Means Committee meeting handouts and spreadsheets can be found here.
Individual state agency budget requests can be found here.
Judicial/Legal
The Senate continued working behind the scenes this week in an effort to get an agreement on S. 244 (Senators Massey, Alexander, Rice, Turner and others), major tort reform legislation that proponents say will fix a broken civil justice system. Debate ended last week after the Senate refused to table an amendment that tort reform proponents felt would significantly weaken the bill. Since that time, Senate leaders have been drafting an amendment that they can get a majority of the body to support while also ensuring that individuals and businesses are held accountable only for the damages they cause, not the actions of others. Governor Henry McMaster stood with Senate leaders and hundreds from the business community last week and urged the General Assembly to pass meaningful tort reform this year. The bill remains on the Senate calendar.
On Tuesday, the Senate Judiciary Committee adopted H. 3529 (Reps. W. Newton, Bannister, Caskey and others), which increases the number of family court judges by one in the ninth, eleventh, and fourteenth circuits. The committee also adopted S. 336 (Senators Alexander, Massey and Rankin), which would permanently set judicial elections by the General Assembly on the first Wednesday in March. Both bills now go to the full Senate for consideration.
After the House passed a liquor liability bill last week, the Senate Judiciary Committee polled H. 3497 (Reps. W. Newton, Wooten, Pope and others) out of committee this week, placing the bill on the Senate calendar for debate. Known as “Dram Shop” liability, the bill would hold businesses and individuals responsible if alcohol is served to someone who is intoxicated and that person harms another person. The bill, along with other tort reform measures being considered, is aimed at lowering insurance premiums for businesses and individuals. The bill remains on the Senate calendar awaiting debate.
Utilities
This week, the House gave third and final reading to S. 157 (Senators Alexander and Rankin), which would allow an electric utility to include storm recovery costs for Hurricane Helene through the issuance of storm recovery bonds. The bill was ratified and is awaiting action by the governor.
New Bills Introduced This Week
All bills introduced this week can be found here:
Coming Up Next week
The House of Representatives Government Efficiency and Legislative Oversight Committee will hold a hearing on Wednesday to allow the public to provide input on a number of state agencies, including the Department of Insurance, the Department of Employment and Workforce and the Department of Education. For more information, click here.
