COLUMBIA, S.C. – Governor Henry McMaster today announced line item vetoes for the Fiscal Year 2025-2026 state budget. The final budget includes a record 80% of the governor's executive budget proposals, including an income tax cut, full funding for an armed, certified, full-time school resource officer in every public school, teacher and law enforcement pay raises, a college tuition freeze, and key investments in conservation, infrastructure, and workforce development.

During his tenure, the governor has enjoyed a strong, collaborative, and productive working relationship on the state budget with the General Assembly. This has resulted in most of his annual executive budget priorities being embraced by House and Senate budget writers and usually produces a low number of vetoes, with only 11 being issued this year.

"South Carolina’s booming economy is the envy of the nation. We are cutting taxes, investing in our teachers, making our schools safer, and providing opportunity, access, and choice for parents and their children," said Gov. McMaster. "Once again, college remains accessible and affordable, government agencies are more accountable, road and bridge construction is accelerating, and we are continuing to protect our communities and culture, our natural resources, and the taxpayers' hard-earned money.”

The governor also announced plans for an executive order that will ensure public confidence and provide transparency and accountability on how taxpayer dollars are spent. The order requires all cabinet agencies and departments to request detailed information before distributing or administering appropriations if they lack sufficient or specific direction on how to do so in the budget. The Governor’s Office began requesting this type of information from state budget writers three years ago.

"The public has a right to know exactly how their money is being spent and by whom. Without that information, they cannot evaluate an appropriation’s merit for themselves," said Gov. McMaster. "This extra step will help provide additional accountability and transparency for the public in the operation of state government.”

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: 

"Working together, we have provided South Carolina taxpayers with the largest income tax cuts in state history, and we’re not finished. This budget continues those cuts. To date, over $1 billion in income taxes have been eliminated – allowing taxpayers to keep more of their hard-earned money instead of sending it to the government. And we will continue cutting the income tax rate until it is the lowest in the Southeast."

FULL-DAY 4K: 

"This budget continues to build on the remarkable progress we have made in early childhood education, investing in our teachers, making our schools safer and providing opportunity, access and choice for parents and their children.

"Data has shown that a child from a low-income household enrolled in a state-funded, full-day four-year-old kindergarten program is more likely to possess the skills to learn than their peers who do not participate.

"That’s why five years ago, I proposed funding for the statewide expansion of the full-day four-year-old kindergarten program and the General Assembly agreed. This allowed parents from low-income households to enroll their four-year-old child in kindergarten programs run by public schools, private childcare centers or private schools."

TEACHER PAY: 

"Last year, we raised the minimum starting salary in South Carolina to $47,000, which not only exceeded the Southeastern state average but was higher than both Georgia and North Carolina.

"This budget increases the minimum starting teacher salary to $48,500, keeping us on schedule to meet our $50,000 goal next year, with more to come."

SCHOOL CELL PHONE BAN: 

"We all know that cell phone use is distracting. Five years ago, I began including a proviso in my executive budgets prohibiting the use of cell phones or other personal electronic communication devices by students at school. Last year, the General Assembly included this ban in the state budget, and the ban went into effect in January 2025.

"Teachers and administrators reported that the impact of the cell phone ban was almost immediate. The classroom distraction, anxiety, stress and behavior issues have been dramatically reduced – freeing up teachers to teach and students to learn without the burden of added distraction."

SCHOOL RESOURCE OFFICERS: 

"At my request, the General Assembly began funding an SRO grant program administered by the Department of Public Safety. The program provides local law enforcement agencies with funds to hire and equip a full-time SRO and assign them to a public school that does not have one assigned to it.

"The program has been enormously successful. As I speak, there are only 177 out of 1,284 public schools without a full-time SRO.

"However, this year the General Assembly finished the job and provided the funding necessary to assign an SRO at the last 177 schools.  So when the next school year begins in the fall, every public school in South Carolina will have funding for an armed, certified full-time school resource officer on campus providing safety for students and teachers and comfort for parents.  And these officers are backed by our unique resource officer training program conducted on-site under real life conditions at the old Gilbert Elementary School and run by the State Law Enforcement Division."

SCHOOL CHOICE: 

"This budget once again provides funds for the Education Scholarship Trust Fund. These funds will continue to allow low-income parents to choose the type of education environment and instruction that best suits their child’s unique needs."

COLLEGE TUITION FREEZE: 

"Six years ago, I proposed that we freeze college and university tuition to keep access to a degree affordable for in-state resident students. The General Assembly agreed, and this year’s budget marks the sixth straight year that college tuition remains frozen for in-state students."

NEEDS-BASED FINANCIAL AID: 

"Four years ago, I successfully proposed increasing annual lottery funding, from $20 million to $80 million, for needs-based grants and financial aid for lower-income college students – so they can afford to attend any in-state public college, university, or technical college. In addition, $20 million is available annually for tuition grants, which provides financial assistance for lower-income students enrolled at any of our state’s private, independent, and historically black colleges and universities."

S.C. WORKFORCE INDUSTRY SCHOLARSHIPS: 

"To address the high demand for skills, training and knowledge, this budget once again provides $91.4 million for the valuable South Carolina Workforce Industry Needs Scholarships (SC WINS) program at our state’s technical colleges.

"We created this very successful program using federal COVID-19 pandemic funds for scholarships to cover the cost of tuition and fees at any of our technical colleges. The General Assembly began funding this program in the budget four years ago. This has provided over 120,000 South Carolinians with a post-secondary or industry credential in high-demand careers like manufacturing, nursing, computer science, information technology, transportation, logistics, or construction."

S.C. EDUCATION LOTTERY: 

"In January, I asked the General Assembly to consider allowing education lottery tickets to be purchased using – not credit cards – but debit cards, and they agreed. Why? Because many businesses no longer accept cash – and many people don’t carry it.

"The Lottery Commission estimates debit card purchases will generate an additional $15.9 million for additional college scholarships, financial aid and grants at our public and private colleges and universities."

NEW NEUROLOGICAL HOSPITAL: 

"In my recent State of the State address, I announced that we had a once-in-a-generation opportunity to create a world-class neurological facility for critical care procedures, rehabilitation services, and leading-edge research in the field of neurology.

"The $150 million provided by the General Assembly will match the Department of Health and Human Services’ commitment of $200 million to pay for the construction of this new neurological hospital, which will house an 80-bed critical care unit and a 32-bed neurological rehabilitation unit, both operated by the University of South Carolina."

HEALTHCARE AGENCY RESTRUCTURING: 

"We embarked on the largest and most successful government restructuring and accountability effort in over thirty years – bringing direct gubernatorial accountability to the actions of our largest state healthcare service delivery agencies. 

"Two years ago, the Department of Health and Environmental Control was dissolved and was statutorily reconstituted as two new gubernatorial cabinet agencies – the Department of Public Health and the Department of Environmental Services – the directors of which are now both hired and fired by the governor.

"This year, the Department of Mental Health and the Department of Disabilities and Special Needs were dissolved and reconstituted as one new gubernatorial cabinet agency – now called the Department of Behavioral Health and Developmental Disabilities – the director of this agency is now hired and fired by the governor."

INFRASTRUCTURE: 

"The Department of Transportation has made tremendous progress in repairing and improving our transportation system. They have delivered a valuable return on our investments – with the strong help of the executive and legislative branches.

"For instance, in 2017, there were just $2.7 billion in road construction projects underway across the state. Last month, the department had over $7 billion in projects happening in all 46 counties, with more to be done. 

"The $200 million appropriated in this state budget for bridge repair and replacement, and the hundreds of millions appropriated in previous years’ budgets, will allow the department to continue accelerating road and bridge repair, interstate widening and large interchange construction across the state – to meet our state’s growing population."

LAW ENFORCEMENT PAY RAISE: 

"A few years ago, our Department of Administration conducted a comprehensive analysis of state law enforcement pay to ensure that salaries were competitive to attract and retain top-tier talent. We saw what we had to do.

"As a result, South Carolina's law enforcement officers have received substantial pay raises – some as high as 52% in the last three years. This year, I proposed, and the General Assembly funded, a continued investment in our public safety by providing an additional $25.4 million for pay raises, overtime and hiring new officers at our state law enforcement and criminal justice agencies."

DEPARTMENT OF CORRECTIONS: 

"In addition, this state budget continues investment in the Department of Corrections with significant new funding to expand cell phone and contraband interdiction, hire new correctional officers, increase medical and mental health services, and pay for deferred maintenance at our 21 prisons."

DISASTER RELIEF: 

"This state budget follows my recommendations for Hurricane Helene relief. For example, it provides the Department of Transportation with an additional $35 million to cover costs related to debris removal and repairs to roads and bridges – costs that were not reimbursed by the federal government.

"The Office of Resilience is provided with the recommended $40 million in this budget to replenish the two Disaster Relief and Resilience Reserve funds. Both the grant fund and revolving loan fund were utilized and depleted to provide immediate relief and resources on the ground to people impacted by Helene.

"And the General Assembly also agreed to provide over $201.7 million to create the South Carolina Public Assistance program to be administered by the South Carolina Emergency Management Division."

CONSERVATION: 

"This state budget provides a record $60 million for the preservation and conservation of historic, pristine or significant properties and for flood mitigation efforts across the state."