by 
By Mark A. Leon
South Carolina leaders are proposing one of the largest spending plans in state history, fueled by a projected $2.7 billion budget surplus and continued economic growth. The FY 2026-27 Executive Budget prioritizes infrastructure improvements, teacher pay raises, healthcare investments, public safety enhancements, workforce development, and tax relief, while also setting aside more than $1.4 billion in reserve funds. The proposal reflects a continued emphasis on long-term growth, fiscal stability, and investments designed to address South Carolina’s rapidly expanding population and economy.
Transportation and Infrastructure Receive Largest Investment
The single largest allocation in the proposed budget is directed toward transportation infrastructure. The South Carolina Department of Transportation would receive $1.1 billion to address inflation-driven cost increases and accelerate major highway projects across the state.
Funding would support ongoing improvements including:
- Interstate 26 widening between Charleston and Columbia
- Interstate 95 widening projects
- Carolina Crossroads (“Malfunction Junction”) improvements in Columbia
- Future capacity expansions on Interstate 77 and Interstate 85
Local governments would also benefit from $321.2 million in Local Government Fund distributions and $79.8 million dedicated to fire district support statewide.
Major Investments in K-12 Education
Education remains one of the state’s highest funding priorities.
The budget includes $150 million for teacher salary increases, raising the state’s minimum starting teacher salary from $48,500 to $50,500 while providing a $2,000 increase across the entire teacher salary schedule.
Additional education investments include:
- $61.4 million for the Education Scholarship Trust Fund
- $50 million for instructional materials
- $20 million for school safety grants
- $15 million for summer reading camps
- $9.9 million to expand four-year-old kindergarten access
- $8.7 million for universal school breakfast availability
The scholarship funding is expected to support approximately 20,000 students through South Carolina’s school choice programs.
Higher Education and Workforce Development
South Carolina’s colleges and universities would receive significant support under the proposal.
The budget allocates $39.2 million to freeze in-state tuition rates for a seventh consecutive year, helping families manage rising education costs.
Additional higher education investments include:
- $81.7 million for university maintenance and capital projects
- $40.3 million for technical college improvements
- $299.1 million for LIFE, HOPE, and Palmetto Fellows scholarships
- $95 million for SCWINS workforce scholarships
- $80 million for need-based grants
- $53 million for technical college tuition assistance
- $15 million for Meeting Street Scholarships
State officials say the investments are intended to strengthen workforce development pipelines and improve access to postsecondary education.
Healthcare Funding Targets Cancer Care and Modernization
Healthcare agencies would receive nearly $100 million for modernization efforts and operational improvements.
One of the largest healthcare allocations is a $115 million investment in the Medical University of South Carolina’s effort to establish a National Cancer Institute-designated Comprehensive Cancer Hospital, a move expected to enhance cancer treatment and research capabilities statewide.
The proposal also includes $36.7 million to maintain state employee health insurance benefits without increasing premiums for the 14th consecutive year.
Public Safety and Corrections Receive Funding Boost
The budget continues to prioritize public safety through additional investments in law enforcement and corrections.
Key allocations include:
- $10.7 million for law enforcement salaries and staffing
- $35 million in grants for sheriff’s office equipment
- Continued funding of $56.2 million for school resource officers
- $58.9 million for Department of Corrections staffing, technology upgrades, and facility improvements
The South Carolina Emergency Management Division would also receive $20 million for disaster recovery assistance to help communities cover costs not reimbursed through federal programs.
Conservation and Resilience Funding Expands
Environmental and conservation initiatives receive $68 million in new funding.
The money would support:
- Conservation Land Bank programs
- Department of Natural Resources projects
- Forestry Commission initiatives
- Office of Resilience programs
- Flood mitigation efforts
- Land preservation projects
An additional $3 million is designated specifically for agricultural conservation easements to protect working farms and forests.
Tax Relief and Fiscal Reserves
The budget proposal includes $107.2 million in tax relief through a reduction of the state’s top individual income tax rate from 6.0 percent to 5.9 percent.
At the same time, lawmakers propose depositing $1.406 billion into reserve accounts, including:
- $984 million into the General Reserve Fund
- $422 million into the Capital Reserve Fund
The reserve deposits are designed to strengthen South Carolina’s financial position during future economic downturns or emergencies.
Looking Ahead
The proposed FY 2026-27 budget reflects South Carolina’s continued focus on accommodating growth while maintaining fiscal discipline. With major investments in transportation, education, healthcare, workforce development, public safety, and conservation, state leaders are directing surplus revenues toward both immediate needs and long-term priorities. As the budget moves through the legislative process, lawmakers will continue debating funding levels and spending priorities before a final budget is adopted.
