The House of Representatives and Senate did not meet in session this week. The Senate Finance Committee worked Tuesday and Wednesday to finish its version of the budget while the Senate Judiciary Committee met on Wednesday. No other House or Senate committees met this week.  

There are five weeks left in the second year of the 2025 – 2026 legislative session with adjournment by 5 p.m. on Thursday, May 14.  

Senate Finance Committee approves its version of the budget 

The Senate Finance Committee gave final approval to its version of the budget on Wednesday sending the budget to the full Senate for debate during the week of April 21.  

The Senate Finance Committee version of the budget includes the following: 

• $15.2 million added to the Local Government Fund base amount. Committee members fully funded the LGF at 5% according to Act 84, which passed into law in 2019 (same as the House version of the budget). 

• $12.5 million in nonrecurring funding to the SC Department of Transportation for a road buyback program.  

• $50 million in nonrecurring funding and $139 million from the capital reserve fund to the SC Department of Transportation for bridge modernization.  

• $10.5 million in nonrecurring dollars to the SC State Election Commission for voting system upgrades (same as the House version of the budget). 

• $1 in nonrecurring funding and $72.8 million from the Capital Reserve Fund to the SC Emergency Management Division for a Federal Emergency Management Agency match.  

• $443,747 in additional recurring funding to councils of governments for financial supportive staff.  

• $750,000 in recurring funding to the SC Department of Natural Resources for abandoned boat removal (same as the House version of the budget). 

• $960,000 in recurring funding to the SC Department of Juvenile Justice for teen after-school and juvenile arbitration.  

• $200 million in nonrecurring funding to county transportation committees in addition to the gas tax distribution.  

• $10 million in nonrecurring funding to the SC Department of Parks, Recreation and Tourism for beach renourishment grants. Municipalities are eligible to apply.  

• $6 million in nonrecurring funds to the SC Rural Infrastructure Authority rural infrastructure fund.  

• $6 million in nonrecurring funds to the SC Rural Infrastructure Authority for a statewide Water and Sewer Fund.   

• $1 million in recurring dollars and $1.5 million in nonrecurring funds to the SC Department of Behavioral Health and Developmental Disabilities for mental health alternative transport.  

• $1.18 million in recurring dollars to the SC Department of Labor, Licensing and Regulation for the Firefighter Assistance Support Team (SC FAST).  

The provisos that deal with local government remained unchanged in the Senate Finance Committee version of the budget. For questions about the budget, contact Daina Phillips (dphillips@masc.sc) at 803.933.1203. 

Action Needed 

S125, a bill that corrects a loophole in current law, passed the Senate in 2025 and has been in the House Ways and Means Committee since that time.   

Currently, state law allows nonprofit housing corporations that develop affordable housing to receive a full property tax exemption from the SC Department of Revenue. This exemption is given in perpetuity, and SCDOR is not required to notify local governments when it issues an exemption.  

S125 would require DOR to notify the local government within 30 days of the department issuing a property tax exemption, and would require the nonprofit entity to prove that affordable housing is still being provided on an annual basis. Lastly, the bill would make the property tax exemption proportional to the nonprofit’s ownership in a qualifying property, up to 50%. So, if a nonprofit owns 25% of an affordable housing property, they would receive a 25% property tax reduction. Ownership over 50% would receive a full exemption. 

• What to do 
  Cities and towns across the state are experiencing budget deficits because of properties within their municipal boundaries receiving property tax exemptions without notice to the municipal leaders.  
  
  Members are encouraged to contact their House members and urge them to put S125 on a subcommittee agenda. For questions about the bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.

   

Action Needed 

S508, a bill relating to monuments, remains on special order in the Senate. The bill was given second reading with an agreement that allows amendments on third reading. 

This bill 

• Prohibits local governments from relocating, removing, disturbing or altering historic monuments or memorials erected on public property. This prohibition applies to plaques, markers and other messages, including those accessible by a QR code or similar barcodes related to historical monuments and memorials.  

• Prohibits installations and nameplates dedicated in memory of, or named for, historic figures or events from being renamed or rededicated.  

• Allows any person or group to bring civil action against a local government without having to demonstrate injury and may recover damages, attorney fees and court costs. 

• Requires local governments to relocate monuments and memorials to public areas of equal prominence or visibility if movement is necessary because of utility-related infrastructure improvements, or the erection of new government structures. The monument or memorial must be moved back to its original location upon project completion.  
   

• What to do 
  In addition to limiting local governments of their ability to manage community assets, this bill would expose cities and towns to costly lawsuits. Members are encouraged to contact their senators to ask that local decisions remain in the hands of local leaders. For questions about the bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.