Governor Henry McMaster Announces Line Item Vetoes for FY 2026-2027 State Budget

COLUMBIA, S.C. - Governor Henry McMaster today announced line item vetoes for the Fiscal Year 2026-2027 stage budget. The final budget includes 92% of the governor's executive budget proposals, including an income tax cut, teacher and law enforcement pay raises, a college tuition freeze, and key investments in conservation, education, infrastructure, and workforce development.

"South Carolina is stronger, safer, and more prosperous than it was ten years ago, and people across the country have taken notice," said Gov. McMaster. "We have cut taxes, invested in education and workforce development, prioritized public safety and infrastructure, and protected our state's natural resources. These investments have made South Carolina one of the best places in the country to live, work, and raise a family, and I am confident we will continue building on that success."

For a copy of the governor's veto message, click here.

The governor's priorities funded in the final budget include the following notable proposals (all statements are attributable to Gov. McMaster):

INCOME TAX CUT:

"The cuts to individual income taxes are substantial. In 2017, the top marginal individual income tax rate in South Carolina was 7%. Prior to this year, we had lowered that rate to 6%. This year, we lowered the top rate further, from 6% to 5.21% with passage of Act 110 of 2026. Since 2022, South Carolina has eliminated $3.72 billion in individual income taxes, allowing taxpayers to keep more of their hard-earned money."

HOMESTEAD EXEMPTION:

"This budget also provides additional property tax relief to homeowners who are 65 years of age or older, who are totally and permanently disabled, or who are legally blind by increasing the Homestead Exemption from $50,000 to $75,000."

TEACHER PAY:

"I have made raising teacher pay a priority, and working together, we have now fulfilled my pledge to pay every starting teacher at least $50,000. Eight years ago, the minimum starting salary of a teacher in South Carolina was $30,113, and the average starting salary of a teacher in South Carolina was ranked 47th in the country. Last year, the minimum starting salary of a teacher was $48,500, and the average starting salary of a teacher in South Carolina was ranked 22nd in the country. This school year, the minimum starting salary of a teacher is $50,500, and our State's ranking will improve more."

SCHOOL RESOURCE OFFICERS:

"At my request, the General Assembly began funding a school resource officer (SRO) grant program administered by the Department of Public Safety for public schools that did not have an assigned SRO. These law enforcement officers stand on the front lines to keep children safe so that they can learn and grow. In school year 2018-19 there were 406 full-time SROs. In school year 2025-26 there were 1,181 SROs. This year's budget continues critical funding for this program."

FULL-DAY 4K:

"In 2021, I proposed funding for the statewide expansion of the full-day four-year-old kindergarten program, and the General Assembly agreed. This budget adopts my recommendation to expand the program in private providers where there are slots available to children whose annual family income is 300% or less of the federal poverty guidelines."

SCHOOL CHOICE:

"This budget once again provides funds for the Education Scholarship Trust Fund. These funds will allow parents of up to 15,000 students to choose the type of educational environment and instruction that best suits their child's unique needs."

TUITION FREEZE:

"This year's budget marks the seventh consecutive year that the General Assembly has agreed with my proposal to freeze in-state college tuition.

"Other ways that we continue making education affordable is allocating $80 million in lottery revenues for need-based grants and $20 million in lottery revenues for the South Carolina Tuition Grants Program, which is financial aid to students attending our State's private, independent, and historically black colleges and universities.

"We also found a new way to make higher education more affordable this year. I proposed, and this budget includes, $18.7 million in lottery revenues for the Meeting Street Scholarship Fund, a new need-based college scholarship."

S.C. WORKFORCE INDUSTRY SCHOLARSHIPS:

"To address the high demand for skills, training, and knowledge, this budget once again provides $95 million for the South Carolina Workforce Industry Needs Scholarships (SC WINS) program at our State's technical colleges.

"Started in 2020, this program has provided more than 150,000 South Carolinians with a post-secondary or industry credential in high-demand careers like manufacturing, nursing, computer science, information technology, transportation, logistics, and construction."

CONSERVATION:

"This budget provides $88 million for the preservation and conservation of historic, pristine, or significant properties across the State, and an additional $7.5 million for statewide mitigation projects."

INFRASTRUCTURE:

"There are almost $7 billion in active projects underway across the State, up from $2.7 billion in 2017. Much of that progress is a result of four years' worth of state appropriations totaling $1.4 billion for new construction and improvements to state-owned roads, bridges, highways, and interstates. This budget includes an additional $377 million for roads and bridges."

LAW ENFORCEMENT PAY RAISE:

"This budget provides an additional $8.3 million for pay raises, overtime pay, and the hiring of new officers at our state law enforcement and criminal justice agencies.

"In addition, the budget also includes a proviso to allow a retired member of the Police Officers Retirement System who has been retired for at least ninety consecutive calendar days to be hired and return to employment and earn up to $80,000 annually without affecting the monthly retirement allowance."