South Carolina budget deal leaves raises and projects awaiting final votes

South Carolina budget negotiators reached a compromise on July 22, but the state still did not have an enacted fiscal year 2026-27 spending plan as of July 29.

The agreement would provide pay raises for teachers and state employees and direct funding toward roads, law enforcement and administration of SNAP benefits. Those provisions remain contingent on final approval by the House and Senate and consideration by Gov. Henry McMaster.

Raises and services remain tied to final approval

For teachers and state employees, the compromise could bring higher pay if lawmakers approve the deal without further changes and the governor signs the resulting budget. The same uncertainty applies to the negotiated funding priorities for transportation, public safety and SNAP administration.

Residents should not assume that the new spending has begun. The compromise is an agreement among budget negotiators, not an enacted appropriations law.

Senior homeowners would receive a smaller tax break

The deal also includes a property-tax break for senior homeowners, but the benefit was reduced from earlier proposals during negotiations. Because the budget had not been enacted by July 29, the negotiated provision was not yet available to homeowners.

That distinction matters for residents planning their household budgets. The proposal could change again during final legislative action, and homeowners should wait for an enacted measure and official implementation guidance before counting on a reduction.

Local projects and Scout Motors funding were separated

Legislator-requested local projects were removed from the main budget package and deferred to a separate review and voting process. The projects were not permanently rejected, but their funding was no longer part of the compromise awaiting final approval.

The agreement also delayed a decision on up to $150 million connected to Scout Motors. The funding question is expected to remain open while the Legislative Audit Council reviews the costs. The request therefore should not be described as approved or available.

Stopgap authority is keeping government operating

South Carolina’s fiscal year began July 1 without a new annual appropriations act. A continuing-resolution law allowed the state to keep operating under stopgap authority, primarily covering recurring expenses and other specified items while lawmakers worked on the annual budget.

That temporary authority did not automatically authorize every proposed raise, project or new spending item in the compromise.

What happens next

The House and Senate must take final action before the compromise can go to Gov. McMaster. The official status page for H. 5126 showed the appropriations bill still in conference committee on July 29, and the legislative meeting schedule listed no meetings from July 27 through July 31.

The immediate accountability question is when lawmakers will return for final votes and whether the agreement changes before enactment. Until then, teachers, state employees, senior homeowners and communities seeking local-project funding should treat the deal as pending.

Sources

• South Carolina General Assembly H. 5126 status
• WIS/WTOC budget-deal report