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Budget — H. 4025. The General Assembly gave final approval this week to the completed version of the FY 2025-26 Appropriations Act, which includes increased funding to the Local Government Fund (LGF) by $14,566,488 statewide. This represents full funding to the LGF under the statutory formula. See the estimated LGF county allocations for FY 2025-26.
Items the General Assembly funded this year include:
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$66 million to cover a base pay increase for state employees (see proviso 117.141);
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$106 million to cover all the state employees’ and retirees’ share of a projected 4.6% increase in premiums for the State Health Plan (see proviso 108.6);
- $12 million in recurring money for the Rural County Stabilization Fund;
- $750,000 in recurring money for PTSD treatment for first responders;
- $3 million in recurring money to Labor, Licensing and Regulation for the V-SAFE Fund;
- $3.784 million in recurring money for the Firefighter Cancer Benefit Plan;
- $4.5 million to the Department of Mental Health for the Alternative Transportation Program;
- $1 million in recurring money to supplement the Councils of Governments;
- $1.1 million in additional recurring funding for State Aid to County Libraries to raise the per pupil funding to $2.75;
- $21 million in recurring money and $8.3 million in one-time money to the Department of Public Safety for the School Safety Program;
- $2 million in recurring funds and $6 million in nonrecurring funds to the Department of Parks, Recreation & Tourism (PRT) for destination-specific marketing grants as well as $1.1 million in one-time money for regional promotions and $9 million in one-time money for tourism development;
- $5 million in one-time money to the Housing Finance and Development Authority for first-time homebuyers workforce housing;
- $12 million in one-time money to the Rural Infrastructure Authority for the Rural Infrastructure Fund and $15 million for the statewide water and sewer fund;
- $80 million in one-time money and $1 million in recurring money to the Department of Commerce for LocateSC site readiness and $80 million in one-time money for airport enhancements;
- $5.35 million in recurring money and $5 million in one-time money to the Division of Aeronautics for airport safety and development;
- $40 million in one-time money to the Office of Resiliency for the Disaster Relief and Resilience Reserve Fund;
- $200 million in one-time money to the South Carolina Department of Transportation (SCDOT) for bridge modernization and $35 million for repairs needed due to Hurricane Helene;
- $13.3 million in one-time money to the Department of Natural Resources (DNR) for Disaster Relief Grant Matching;
- Over $198 million in federal funds from Federal Emergency Management Agency (FEMA) to the South Carolina Emergency Management Division (SCEMD) for declared disaster relief (including Hurricane Helene) and $10 million in total funding for the revolving loan fund;
- $2.2 million in additional recurring money to the Department of Environmental Services (DES) for the air quality program and almost $3.5 million in additional recurring money for the drinking water program;
- $5.5 million in recurring money and $25 million in one-time money to the Conservation Bank for grant funding;
- $4 million to the Department of Health and Human Services in addition to $10 million from the federal government for opioid treatment services;
- $3 million in recurring money and $700,000 in one time to the Election Commission for annual election costs and almost $11 million in one-time money for statewide voting system upgrades;
- Almost $13 million in new recurring money to the Department of Veterans’ Affairs for veteran homes;
- $19.4 million in one-time money to the Attorney General’s Office for the Crime Victim Assistance “SAVS” Program;
- $4.2 million in recurring money to the Prosecution Coordination Commission for judicial circuit state support; and
- $2.9 million in recurring money to the Commission on Indigent Defense for the Office of Circuit Public Defenders – Defense of Indigents.
The following provisos of interest were added or substantially amended by the General Assembly in this year’s budget:
67.17. DJJ: Capital Expenditure Charge. This new proviso requires local governments using the juvenile detention services provided by the Department of Juvenile Justice (DJJ) to pay a capital expenditure charge of $125 per day per child not to exceed 25 days to DJJ to cover capital expenditures and investments in the facilities that house such juveniles. This charge is in addition to the per diem charge of $50 that offsets operating expenses. If full funding is not received from a local government, then the remainder of the funds due shall be transferred to DJJ from the Local Government Fund on behalf of the local government. The transfer to DJJ on behalf of the local government shall be deemed to have been distributed to the local government. This is more than three times the amount that counties currently pay!
117.202. GP: Political Subdivision Reimbursement. This new proviso requires manufacturing property currently receiving the partial value exemption to continue to receive the exemption in FY 2025-26. The proviso also increases the reimbursement cap from $170 million to $300 million. To the extent that funds exceed the amounts necessary to make the full reimbursement for the property tax exemption are unavailable, then the balance in the Trust Fund for Tax Relief may be expended to make the reimbursements in full.
118.20. SR: Homestead Exemption Fund. The existing proviso was amended to direct over $124,000,000 in one-time money from the Homestead Exemption Fund to be distributed as a one-time, nonrecurring appropriation by Sept. 30, 2025, to the General Fund to provide income tax relief.
27.1. LIB: Aid to Counties Libraries Allotment. The General Assembly amended this existing proviso that allots the amount appropriated for "Aid to County Libraries" to each county on a per capita basis according to the official U.S. Census for 2020, as aid to the county library. No county shall be allocated less than $150,000 under this provision, and the funds must be distributed in two equal installments. County libraries must also have an adopted policy in place that they do not offer books or materials that appeal to the prurient interest of children under 17 in the children's, youth, or teen book sections and are only made available with explicit parental consent. A failure to adopt such a policy will result in immediate withholding of the allocation. If the local legislative delegation presents evidence that these requirements are not being met by a county library, the delegation may request a comprehensive review of the certification by the State Library. All remaining funds shall be withheld until the State Library verifies full compliance and issues a written determination of compliance to the delegation.
37.7. DAODAS: Real Property Sale Approval. This new proviso prohibits any county drug and alcohol authority receiving state funds to sell, transfer, or otherwise dispose of any real property owned by the authority without prior written approval from a majority of the local legislative delegation representing the county in which the property is located.
43.7. FC: Response to Declared Emergencies. This new proviso transfers up to $3 million to the South Carolina Forestry Commission to help with the control and management of wildfires when declared an emergency.
55.10. DES: Pollutants Remediation Fund. The General Assembly amended this existing proviso, dealing with polyfluoroalkyl or PFAS remediation, to change the allocation of funds. Previously, 60% of the funds were made available to private well owners and municipal, county, joint, or otherwise public drinking water systems serving 30,000 customers or fewer. The remaining 40% were made available to municipal, county, joint, or otherwise public drinking water systems serving more than 30,000 customers. The amended proviso now allows more than 60% to go to the smaller systems and up to 40% to the larger systems, at DES’s discretion.
55.20. DES: Innovative Reusable Byproduct Pilot Program. This existing proviso 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. The General Assembly amended the proviso requiring DES to submit a program report to the legislature by June 30 each year.
55.26. DES: Permitting Timeframes. This new proviso requires DES to issue a decision on a completed application for a permit no later than 90 days after the date the application is received by the department. DES and the applicant may mutually agree in writing to extend this review period, and the department may not stop, stay, or otherwise alter the review period without a written agreement. The General Assembly further amended this proviso to exclude energy projects with timeframes set forth in the comprehensive energy bill, H. 3309.
62.25. SLED: PTSD Treatment Program. This new proviso allows coroners and deputy coroners to be eligible for the PTSD treatment program administered through the South Carolina Law Enforcement Division and the South Carolina Law Enforcement Assistant Program.
63.8. DPS: School Resource Officers. The General Assembly amended this existing proviso, relating to the School Safety Program, to allow school districts in “Tier IV Counties” to contract with private companies to hire Class I law enforcement officers to serve as school resource officers.
84.19. DOT: Waiver Valuations. This new proviso states that for federal funds appropriated to SCDOT, cost estimates of $20,000 or less for uncomplicated acquisitions of real property—defined as those involving unimproved strips of land with no damage, no changes in highest and best use, or no significant cost to cure—are considered waiver valuations as defined by the Federal Highway Administration and are not subject to the Uniform Standards of Professional Appraisal Practice. SCDOT must submit a detailed report on the waiver valuations to the Senate Transportation Committee and the House Education and Public Works Committee by June 30, 2026.
92D.1. SCOR: Catastrophic Weather Event. The General Assembly amended this existing proviso to update calendar year references, add Hurricane Helene in reference to the catastrophic weather events, and add the Office of Resilience’s Rapid Rebuild Program to the listed offices for funding improvements.
96.4. SS: Cable and Video Service Certificates. This new proviso prohibits the Secretary of State from automatically denying the application or amending the application for a cable or video service certificate pursuant to Section 58-12-310 if a community does not indicate its unconditional consent to the state-issued certificate of franchise authority within 65 days.
100.17. ADJ: PPE Stockpile. The General Assembly amended this existing proviso to allow SCEMD to donate excess or expired personal protective equipment for nonmedical use to nonprofit charitable organizations if the materials cannot be sold.
100.24. ADJ: Public Assistance Program. This new proviso creates a public assistance program to support disaster recovery under SCEMD, in coordination with the Office of Resilience. This program may be used by local governments experiencing a disaster that is localized and if the statewide damage meets the FEMA threshold of $9 million. Cost reimbursement will be 75% of eligible costs.
102.1. ELECT: County Board of Voter Registration and Elections Compensation. The General Assembly amended this existing proviso to increase the compensation rate of board members from $1,500 for each member to $2,500 for each member and from $13,500 per county to $22,500 per county.
102.2. ELECT: Elections Managers & Clerks Per Diem. Managers and clerks of state and county elections shall receive a per diem of $75.00 for the day of work and $60.00 for training and paperwork. Managers shall not be paid for more than two days for any election and clerks for not more than three days for any election. The commission may adjust the per diem of $75.00 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. Up to three additional managers per county may be appointed to assist county boards of voter registration and elections with the absentee/fail safe voting process prior to, on Election Day, and immediately following statewide elections. Managers assisting the county boards of voter registration and elections in the absentee/fail safe process may receive a per diem of $75.00 per day for not more than a total of 15 days regardless of whether one, two, or three additional managers are used.
102.7. ELECT: Training and Certification Program. The General Assembly amended this existing proviso, relating to training and certification programs for County Boards of Voter Registration and Elections, to provide that all stipends that are withheld due to the failure of a member to attend a required training course must be paid if the member signed up for a course that was subsequently canceled.
117.141. GP: Employee Compensation. The General Assembly amended this existing proviso to provide a salary increase to state employees. Their salaries shall be increased to either the minimum of the new state pay grades established by the Department of Administration, or 2%, whichever is greater.
117.147. GP: Homestead Exemption Fund. Suspends for FY 2025-26, 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.
117.151. GP: Job Ordered Contracting Pilot Program. The General Assembly amended this existing proviso to allow the Division of Procurement Services and the State Fiscal Accountability Authority to pilot test job order contracting methods at the request and on behalf of up to 22 governmental bodies consisting of eight state agencies, 12 school districts, and two other political subdivisions to acquire construction services when the exact time or quantities of future jobs are not known at the time of contract award during the current fiscal year. An individual project using job orders may not exceed $750,000 (previously $500,000) and the sum of all individual job orders may not exceed $6 million (previously $4 million) per contract.
117.164. GP: Land Acquisition. The General Assembly amended this existing proviso to require DNR, PRT, the Office of Resilience, the Forestry Commission, and the Conservation Bank to collaborate to acquire interests in land for natural resource preservation or rural preservation in order to maximize the most cost-effective options for purchasing property and providing the greatest public benefit. Budget requests must be submitted to the Executive Budget Office, which must prepare a report for the General Assembly by Aug. 15 each fiscal year.
117.191. GP: Fraud Mitigation. This new proviso requires state agencies that issue checks as a benefit to the general public—rather than as payment for services rendered—and that do not use the procurement process for such disbursements to develop and implement measures to mitigate fraud. The agencies must also compile a report detailing fraud mitigation measures implemented, any incidents of fraud detected, and corrective actions taken. The report must be submitted to the General Assembly by Dec. 31 of the current fiscal year.
117.213. GP: Aid to Fire Districts Planning. This new proviso requires the Revenue and Fiscal Affairs Office (RFA), in conjunction with the Executive Budget Office, to develop and submit options to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee by Dec. 31, 2025, that address the Aid to Fire District open-ended status as defined by the Office of Comptroller General. The options must ensure that all collections are disbursed to fire districts as prescribed by statute and disbursements are not reliant upon budgetary surpluses. The Department of Insurance and the Office of the State Treasurer must also cooperate with any requests for information from RFA.
The following provisos of interest were introduced but ultimately NOT included by the General Assembly in this year’s budget:
73.10. ORS: Rural Community Centers. This proviso, added by the Senate, would have directed the Office of Regulatory Staff (ORS) to provide $250,000, subject to funding, to expand the availability of broadband, free wi-fi, and telehealth services in rural community centers.
73.11. ORS: Coal Plant Conversion. This proviso, added by the Senate, would have required ORS to evaluate the feasibility of converting retiring coal-fired power plants into biomass plants fueled by woodchips or other organic matter. ORS could have engaged third parties with relevant experience to conduct evaluations, and all costs would have been assessed to the electrical utilities on a pro-rata basis and would have been recoverable by the utilities through their base rate fuel costs.
96.6/117.207. SS: Oath of Office. This proviso would have required the secretary of state to notify all boards, commissions, and each clerk of the 46 county councils, that all boards and commissions must provide certification in writing of taking the oath of office by July 31, 2025. A failure to submit the timely certification to the secretary of state would result in the forfeiture of any direct or indirect funding to the board or commission as provided within the Appropriations Act.
113.10. AS-TREAS: Disgorging of Funds. This proviso would have provided for a claw-back of Local Government Funds from a municipality if the municipality, by ordinance, prohibited medical and mental health professionals from providing conversion therapy or reparative therapy to minors at any time during the fiscal year.
117.205. GP: Third-Party Grants and Contracts. This proviso would have required each state agency receiving funds that are then awarded as a grant or contract to a third-party organization, including local governments, to submit a plan of how the state funds would be spent and how the expenditures would provide a public benefit. Prior to distributing the funds, state agencies would be required to acknowledge that they are subject to civil and criminal penalties for any misuse and that records of funding are subject to review by the Office of Inspector General, State Auditor, or the granting agency. Each receiving entity, including local governments, would be required to retain relevant records for five years.
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