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Budget Bill — H. 5100. The Senate Finance Committee adopted its version of the FY 24-25 Appropriations bill, which includes increased funding to the Local Government Fund (LGF) by $13,872,845 statewide. This represents full funding to the LGF under the statutory formula. (See updated LGF County Allocation Estimates Chart). The Senate will begin deliberating the budget the week of April 22.
Items the Senate Finance Committee continued to fund this year included:
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$12 million for the Rural County Stabilization Fund, which represents the same funding as the current fiscal year (See updated RCSF Estimates Chart);
- $82.5 million to cover a $1,375 base pay increase for state employees making $50,000 or less and a 2.75% base pay increase for state employees making more than $50,000;
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$107 million to cover the state’s share of a projected 11.8% increase in premiums for the State Health Plan (see proviso 108.6 below);
- $750,000 for PTSD treatment for first responders;
- $3 million to Labor Licensing and Regulation for the V-SAFE Fund;
- $9 million for destination-specific tourism grants;
- $3.784 million for the Firefighter Cancer Benefit Plan;
- $1 million to supplement the Councils of Governments;
- $1.1 million in additional recurring funding for State Aid to County Libraries;
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$1.1 million in additional money for regional tourism promotions (see proviso 49.1 below);
- $11.4 million in additional funding to the Rural Infrastructure Authority (RIA) for the Water Quality Revolving Loan Fund;
- $4 million to the Office of Resiliency for the Disaster Relief and Resilience Reserve Fund;
- $9 million in additional money to the Conservation Bank for grant funding;
- $11.5 million in additional money to the State Election Commission for election operations;
- $2.5 million to the Department of Mental Health (DMH) for the Alternative Transportation Program; and
- $5 million in additional money to the Department of Commerce for the Closing Fund.
The Senate Finance Committee also funded the following new items:
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$100 million to the Department of Transportation (SCDOT) for bridge modification on interstate and primary highways (see proviso 118.hex below);
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$200 million to the County Transportation Committee Acceleration Fund (see proviso 118.hex below);
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$15 million to the Rural Infrastructure Authority (RIA) for the Rural Infrastructure Fund and $15 million for the Statewide Water and Sewer Fund (see proviso 118.hex below);
- $10 million to the Department of Commerce’s SC NEXUS Program for Advanced Resilient Energy;
- $2.5 million to the Department of Environmental Services (DES) for the air quality program;
- $1 million to the Department of Administration for first responder 800MHz communication modernization;
- $10 million to the Department of Corrections for cell phone interdiction;
- More than $34 million to the Department of Veterans’ Affairs for veteran homes;
- $1.28 million to the Department of Veterans’ Affairs for the Veterans’ Cemetery;
- $1 million for the Veterans’ Trust Fund;
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$1 million in income tax credits to comply with H. 3121, the Recreational Trail Easement Tax Credit bill that passed earlier this year;
- $12.5 million to the State Election Commission for voting system upgrades; and
- $5 million to the Attorney General’s Office for a new Crime Victim Assistance “SAVS” Program.
The Senate Finance Committee made the following amendments to the $600 million Homestead Exemption Fund:
118.hex. SR: Homestead Exemption Fund. This new proviso, adopted by the Senate Finance Committee, directs that $600 million from the Homestead Exemption Fund shall be distributed as a one-time, nonrecurring appropriation, by Sept. 30, 2024, for the following purposes listed in order of priority:
- $99.5 million to the General Fund to accelerate the Income Tax Reduction to 6.2%;
- $200 million to the County Transportation Committee Acceleration Fund;
- $100 million to SCDOT for the Bridge Acceleration Fund;
- $117.4 million to SCDOT for the Rural Road Safety Program;
- $15 million to RIA for the Rural Infrastructure Fund;
- $15 million to the RIA for the Statewide Water/Sewer Fund; and
- $53 million to the University of South Carolina Health Sciences Campus for bond avoidance.
Unexpended funds appropriated pursuant to this provision may be carried forward to succeeding fiscal years and expended for the same purposes.
117.149. GP: Homestead Exemption Fund. The Senate Finance Committee adopted the House amendment to the existing proviso that updated fiscal year references. The proviso provides that for FY 24-25, Section 11-11-156(C) of the Code of Laws, relating to remaining balances of the Homestead Exemption Fund at the end of a fiscal year, is suspended.
118.itr. SR: Income Tax Reduction. This new proviso provides that for the 2024 income tax year, the top marginal rate imposed on the South Carolina taxable income of individuals, estates, trusts, and any other entity except those taxed or exempted from taxation under Sections 12-6-530 through 12-6-550 of the S.C. Code, equals 6.2%. The bracket to which the 6.2% applies must be the same as the bracket for which the top marginal rate would have otherwise applied.
The Senate Finance Committee added the following provisos of interest this week during debate:
55.ec. DES: Erosion Control. This new proviso directs the Department of Health and Environmental Control (DHEC) and the new DES’s Office of Ocean and Coastal Resource Management to temporarily pause current enforcement actions that have been brought against property owners in “active beach” areas on the landward portions of the setback line to review the enforceability of such actions once new setback lines are established later this year.
73.rcc. ORS: Rural Community Centers. This new proviso directs the Office of Regulatory Staff to provide $250,000, subject to funding, to expand the availability of broadband, free wi-fi, and telehealth services in rural community centers throughout Berkeley County to provide these services to underserved residents throughout the county. The Senate Finance Committee discussed the opportunity to use this as a model for other counties throughout the state.
99.uls. RSIC: Unfunded Liability Study. This new proviso directs the Retirement System Investment Commission to undergo a study on alternative methods to reduce the State’s unfunded liability in the pension system and to report any findings to the General Assembly.
The Senate Finance Committee deleted or substantially amended the following provisos of interest this week during debate:
35.11. DMH: 988 Call Centers. The Senate Finance Committee adopted the amended House proviso to update fiscal year references regarding funds appropriated in this act for 988 Call Centers. DMH is authorized to provide grants to call centers under a current network agreement with the 988 Suicide and Crisis Lifeline in the state. Call centers qualifying for the grants shall use the funds for the costs associated with answering calls, chats, or texts to the 988 line. DMH shall provide a report on the use of the funds to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee by June 30 of the current fiscal year. Unexpended funds may be carried forward from the prior fiscal year into the current fiscal year and DMH may spend the funds for the same purposes.
42.6. HFDA: SC Housing Statewide Assessment. The Senate Finance Committee adopted the House deletion of the existing proviso that provided $100,000 be used by the Housing Finance and Development Authority (HFDA) for a statewide housing needs assessment prepared by the Darla Moore School of Business.
42.7. HFDA: Collaboration. The Senate Finance Committee adopted the new House proviso directing the HFDA to collaborate with Habitat for Humanity to explore funding opportunities to increase and preserve the supply of affordable and workforce housing.
54.6. RIA: Carry Forward. The Senate Finance Committee adopted the new House proviso that allows RIA to allow unexpended funds for “Planning and Technical Assistance” to be carried forward into the current fiscal year.
55.15. DES: Water Recreational Resources. The Senate Finance Committee adopted the new House proviso that requires the Department of Natural Resources (DNR) to transfer $708,000 from the special water recreational resources fund to DES for the hydrology and aquatics nuisance species program.
55.16. DES: Hazardous Waste Fund County Account. The Senate Finance Committee deleted this new House proviso, as a result of codification. The proviso previously directed the Treasurer to release a county’s Hazardous Waste Fund County Account upon written request of the majority of the legislative delegation that represents the economically depressed area of the county and directed the funds to be used for infrastructure in the depressed area.
55.19. DES: Grant Authority. The Senate Finance Committee adopted the new House proviso to authorize DES to make grants to nonprofits and governmental entities for environmental programs and directs DES to develop policies, procedures, and promulgate regulations.
55.22. DES: Innovative Reusable Byproduct Pilot Program. The Senate Finance Committee deleted the new House proviso that would have established the Innovative Reusable Byproduct Pilot Program from funds appropriated to DES to determine whether innovations in manufacturing, food production, timber, and other similar industries can provide new opportunities to use byproducts that would otherwise require management as solid waste. DES would have been required to submit a program report to the General Assembly by June 30, 2025.
55.23. DES: PFAS Pilot Program. The Senate Finance Committee amended the new House proviso to delete references to the “Per- and polyfluoroalkyl substances (PFAS) Fund.” The previous version of the proviso, as passed by the House, required DES to establish the PFAS Fund and PFAS Removal Pilot Program to evaluate and facilitate the implementation of emerging technologies to remove PFAS compounds from wastewater.
55.24. DES: Dam Repair Assistance Fund. The Senate Finance Committee amended the new House proviso to delete reference to the “Dam Repair Assistance Fund.” The previous version of the proviso, as passed by the House, provided that, of the funds appropriated for System Upgrades beginning with the FY 24-25 Appropriation Act, there is established within DES a Dam Repair Assistance Fund. The interest-bearing fund shall be used for cost-sharing grants to correct dam deficiencies identified by DES for high- and significant-hazard dams regulated under the Dams and Reservoir Safety Act. A grant of up to 75% of the total cost to correct the dam deficiency identified by DES may be paid from the fund. DES may also use funds to administer and manage the grant program. Fund balances shall be carried forward from each prior fiscal year into the current fiscal year and used for the same purpose. System Upgrades appropriations remaining from the FY 23-24 Appropriation Act shall also be deposited into the Fund. DES shall draft policies, criteria, and guidance for the grant program by Oct. 15, 2024. This will be posted on the DES website.
73.6. ORS: S.C. Broadband Map. The Senate Finance Committee adopted the deletion of the existing House proviso to delete provisions that directed the Office of Broadband Coordinator to contact appropriate entities to provide information necessary to compile the county-by-county mapping plan as required by Section 10 of Act 142 of 2020 that shows the location and broadband facility capabilities throughout the state.
92D.1. SCOR: Catastrophic Weather Event. The Senate Finance Committee adopted the amended House proviso to update fiscal year references that direct that improvements to real or personal property used as a residence, such as a mobile home or manufactured housing unit, damaged during the catastrophic weather event in October 2015, Hurricane Matthew in 2016, or Hurricane Florence in 2018, after the event and before June 30, 2025, is not considered an improvement and may not be reassessed at a higher rate as a result of the assistance provided. This provision only applies if, as a result of the catastrophic weather event, the improvements made to the property were funded by the U.S. Department of Housing and Urban Development Block Grant Disaster Recovery program implemented by the Office of Resilience, or its predecessor the Disaster Recovery Office. This provision also applies if, at the discretion of the county and using qualifications determined by the county, the improvements were made with the assistance‑ of a volunteer organization active in disaster recovery, or a similar volunteer organization. Also, during the current fiscal year, the property tax value of an eligible property shall remain the same unless an assessable transfer of interest occurs. No refund is allowed on account of values adjusted as provided in this provision.
100.14. ADJ: Disasters Expenditure Status Report. The Senate Finance Committee adopted the amended House proviso that requires the Emergency Management Division (EMD) of the Office of the Adjutant General to prepare a quarterly report on the status of the expenditure of the funds appropriated in the current fiscal year or in a previous fiscal year for a Federal Emergency Management Agency (FEMA) match for all open federally declared disasters. The quarterly report must include, but is not limited to, expenditure by category of work by state/local and by county and shall be submitted to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee beginning September 30, 2018. The General Assembly will need to update the reporting date.
100.16. ADJ: Natural Disaster FEMA Match. The Senate Finance Committee adopted the House deletion of the existing proviso that authorized the EMD to use existing fund balances to provide the non-federal cost share to state and local government entities for work associated with Hurricane Irma and Hurricane Florence that is eligible under the FEMA Public Assistance Program.
102.1. ELECT: County Boards of Voter Registration and Elections Compensation. The Senate Finance Committee adopted the existing proviso that sets compensation for each County Board of Voter Registration and Elections Commissioners at a rate of $1,500 annually. Funds appropriated for this purpose will also be exempt from budget reductions.
102.2. ELECT: Elections Managers and Clerks Per Diem. The Senate Finance Committee adopted the existing proviso that provides the per diem for managers and clerks of $75 for the day of work and $60 for training and paperwork. The State Election Commission may adjust the per diem of $75 for the managers and clerks of the statewide election to a higher level only to the extent that the appropriation for the statewide election is sufficient to bear the added cost of increasing the per diem and the cost of the statewide election.
103.6. RFAO: Revenue Forecast. The Senate Finance Committee deleted the new House proviso that would have allowed the RFA to extend the delivery of the November revenue forecast.
106.2. SEB: Suspend SCRS & PORS Employer Contribution Rate Increase. The Senate Finance Committee adopted the House deletion of the existing proviso that suspended the increase in the employer contribution rate pursuant to Section 9-1-1085, relating to employer and employee contribution rates, and Section 9-11-225, relating to employer and employee contribution rates, for FY 23-24 and directs that the contribution rate for S.C. Retirement System (SCRS) and the Police Officers Retirement System (PORS) shall increase by 1% from the FY 22-23 rates set in Act 239 of 2022.
108.6. PEBA: State Health Plan. The Senate Finance Committee amended the House version of the proviso to conform to funding. The House version of the proviso amended the existing proviso relating to employer premium increases to update the plan year reference and premium increase percentage to 11.8%.
108.10. PEBA: Covered Contraceptives. The Senate Finance Committee adopted the House deletion of the existing proviso that was codified, which would direct that the State Health Plan shall not require co-pays/deductibles for contraceptives, as this provision was previously codified in the Code of Laws.
108.12. PEBA: COVID-19 Return to Work Extension. The Senate Finance Committee adopted the House deletion of the existing proviso that stated the earnings limitation does not apply to retired SCRS or PORS members who return to covered employment to participate in the state’s public health preparedness and response to COVID-19.
108.16. PEBA: PORS and SCRS Return to Work. The Senate Finance Committee amended the House version of the proviso to restore the original language of the proviso that was passed in last year’s budget. For compensation earnings during the current fiscal year, the earnings limitation does not apply to a PORS member or an SCRS member if the member: has not been engaged to perform services for a participating employer in the system or any other system provided in Title 9 for compensation in any capacity, whether as an employee, independent contractor, leased employee, joint employee, or other classification of worker, for a period of at least 12 consecutive months subsequent to retirement. The exemption under this provision does not apply unless the member first certifies to the system that they satisfy the requirements for the exemption. If a member inaccurately certifies that they satisfy the requirements for the exemption in this provision, the member is responsible for reimbursing the system for any benefits they were wrongly paid.
117.115. GP: SCRS & PORS Trust Fund. The Senate Finance Committee adopted the House amendment to the existing proviso to update fiscal year references. This proviso directs that the funds allocated to Public Employee Benefit Authority (PEBA) for the SCRS or PORS Trust Funds be credited toward contributions due from participating employers in those systems for FY 2024-25; directs that no credits shall be issued for covered employees of special purpose districts, joint authorities, non-profits, hospitals, participating associations or service organizations as defined in Section 9-1-10(11)(e), relating to retirement systems definitions, and state employees whose salaries are paid with federal funds. The proviso excludes the S.C. Ports Authority, the S.C. Public Service Authority, and the Medical University Hospital Authority from this prohibition. It directs PEBA to collaborate with the Department of Administration (DOA), Executive Budget Office, and RFA to determine the amount of credit exclusion for federally funded state employees.
117.117. GP: Opioid Abuse and Prevention Treatment Plan. The Senate Finance Committee adopted the House amendment to the existing proviso to delete references to DHEC and replace these references with the Department of Public Health (DPH). The Department of Alcohol and Other Drug Abuse Services and Department of Health and Human Services (DHHS) are directed to establish a coalition of state agencies, providers, and other related entities to coordinate opioid abuse prevention and treatment services throughout the state.
117.126. GP: School Resource Officer Critical Needs. The Senate Finance Committee adopted the House amendment to the existing proviso to provide that any Class 1 Law Enforcement Officer who retired under PORS on or before Dec. 31, 2023, may return to employment with a public school district as a critical needs school resource officer without affecting the monthly retirement allowance that they are receiving from PORS.
117.131. GP: Offshore Oil. The Senate Finance Committee adopted the House amendment to the existing proviso to change references from DHEC to DES. The proviso prohibits funds appropriated or authorized to DES or to local government entities to be expended to approve a plan, permit, license application or other authorization for: (1) the transportation of unrefined or unprocessed oil or gas into the state’s territorial waters or onto its lands, from offshore oil and gas production platforms and related infrastructure in the Atlantic Ocean; (2) for exploration, development, or production of unrefined or unprocessed oil or gas from within the state’s territorial waters; and (3) for exploration, development, or production of unrefined or unprocessed oil or gas in the Atlantic Ocean. It also provides definitions for development, exploration, production, and territorial waters of the state.
117.142. GP: Employee Compensation. The Senate Finance Committee amended this proviso to conform to funding. Under the House version of the budget, this proviso would amend the existing proviso to provide a $1,000 base pay increase for state employees making less than $66,667 and a 1.5% base pay increase for state employees making more than $66,667. The Senate plan would provide a $1,375 base pay increase for state employees making $50,000 or less and a 2.75% base pay increase for state employees making more than $50,000.
117.145. GP: Mental Health Transportation. The Senate Finance Committee adopted the House deletion of the existing proviso relating to the DMH Alternative Transportation Program.
117.159. GP: Statewide Mobile Health Units. The Senate Finance Committee adopted the House amendments to the existing proviso to change the fiscal year reference to “current fiscal year” and changes references from DHEC to DPH. The S.C. Center for Rural and Primary Healthcare is authorized to provide coordination and assistance to mobile health units in South Carolina. The proviso outlines the actions the center may take in support of increasing access to health care and reducing health inequities in the state. It directs the center to be available to support implementation strategies and provide organization for and collaboration with mobile health units.
117.178. GP: Polling Locations and Availability. The Senate Finance Committee deleted this new House proviso. Under the House version of the budget, this proviso would direct that if a county library denies a request by the County Elections Board to use available space at the library as a polling location, then the county shall have a portion of its State Library, Aid to County Libraries funds withheld and directs the Executive Director of the State Election Commission to notify the State Library and legislative delegation of any refusal.
Attorney General Judicial Retirement — H. 5230. This bill would add the Attorney General to the Judges and Solicitors Retirement System (JSRS). The House Ways and Means Committee adopted an amendment to add full-time masters-in-equity to the JSRS. There was little debate about the $10 million fiscal impact this would have on counties before the amendment was adopted and the bill was given a favorable report, as amended.
On the House floor, an amendment was adopted to move masters-in-equity to PORS. Under this amendment, a master-in-equity who elects to transfer credited service received under the SCRS to PORS between July 1, 2024, and Jan. 1, 2025, may do so upon payment of the accumulated employer and employee contributions and interest in the SCRS, plus 5% of their annual salary in effect as of June 30, 2024, for each year of service prorated for periods of less than a year. After Jan. 1, 2025, a master-in-equity may elect to transfer credited service received under the SCRS to PORS as provided in Section 9-11-40(9). Adding the masters-in-equity to PORS instead of to the JSRS will have a substantially less fiscal impact on counties.
The House gave H. 5230 second and third readings as amended and sent the bill to the Senate.
Airline Aircraft — H. 5310. This bill would exempt 36.8421% of the fair market value of all aircraft of each airline from property tax and define time on the ground for purposes of tax liability as 30 minutes for each landing and two hours for each overnight stay or maintenance day. The House recommitted the bill to the Ways and Means Committee because the language had been included in H.4912, which passed the House and was referred to the Senate Finance Committee.
Ambulance Assessment Fees — H. 4113. This bill allows DHHS to charge every ambulance service a uniform ambulance assessment fee. County fire, police, and emergency medical services are exempt from the fee. This fee shall be updated at least annually, and there may be a penalty imposed of up to 5% for failure to pay. The bill also establishes the Ambulance Fee Trust Fund in the State Treasurer’s Office. A Senate Medical Affairs subcommittee gave H.4113 a favorable report and the bill will be on the next full committee agenda.
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