A budget battle is underway in South Carolina, with lawmakers facing a deadline to pass a new budget. If they fail to agree, a continuing resolution could lock in current spending levels, potentially leading to significant tax relief for citizens.

The Current Budget

The current budget in South Carolina is $39.16 billion, with $13.426 billion coming from fees and fines, $13.246 billion from state taxes, and $12.487 billion from the federal government.

The House of Representatives has proposed a new budget of $42.547 billion, which is $3.38 billion more than the current budget. However, the Senate is resisting this increase, with some lawmakers arguing that it is reckless and unnecessary.

Tax Relief Opportunities

If the Senate holds firm and rejects the House’s proposed budget, it could lead to significant tax relief for South Carolina citizens. With the current budget locked in place, the state could have up to $4 billion available for income tax relief in 2027, which could translate to over $2,000 in immediate relief per taxpayer.

This would be a major boon for citizens who are struggling with affordability issues, and it could have a transformative impact on the state’s economy.

Lawmaker Positions

According to sources, Senate leaders are willing to accept a continuing resolution if the House does not materially cut earmarked projects and put recurring money on the line to fund a property tax cut. The House has approved $340 million in pork barrel spending, which the Senate is resisting.

The Senate is also frustrated with the House’s refusal to adopt a $240 million recurring property tax cut, which is a top priority for Senate Finance Chairman Harvey Peeler.

Original reporting: FITSNews — read the source article.