South Carolina Gov. Henry McMaster gave his eighth ‘State of the State’ address Wednesday night, with proposals that included tax reforms, increased pay for teachers and first responders, the reconfiguration of two statewide mental health departments, and disaster relief.

The longest-serving governor in Palmetto State history spoke for just over 50 minutes before a joint session of the General Assembly and guests in Columbia about the state’s successes, challenges, and opportunities in 2024. The Republican governor highlighted the third-best performance of capital investments in the state’s history, at about $8.2 billion and $1.8 billion in unexpected revenue.

McMaster recognized several Upstate companies, AFL and Keurig Dr. Pepper in Spartanburg County; EnerSys and Magna in Greenville County, for their investments in the state.

He declared the state of South Carolina in “superior fiscal shape” due to government savings and non-spending methods but kept his speech focused on the priorities of 2025 and beyond.

“We’re doing great, but we’ve got work to do in a number of places,” McMaster said. “We’ve got some decisions to make.”

Following his address, state Sen. Margie Bright Matthews of Colleton County gave the Democratic response. She raised questions about a $1.8 billion discrepancy in the state treasury that led to resignations and a Securities Exchange Commission investigation, encouraged taxpayer dollars to be invested in public education instead of school choice efforts, and applauded lawmaker bipartisan efforts to bring jobs to the state.

Here are 10 takeaways from McMaster’s speech.

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Cut personal income state taxes in South Carolina

In 2022, McMaster signed a law reducing personal state income taxes from 7 to 6.2 percent over five years. During Wednesday’s address, he said South Carolina’s booming economy had helped accelerate the tax cuts in just three years.

Because of those successes, McMaster proposed reducing personal state income taxes from 6.2 percent to 6 percent, eventually ending the statewide tax.

“We should not stop at 6 percent… until we can eliminate the personal income tax for our people, all together,” he said.

McMaster estimated that the 0.2 percent reduction would save South Carolina residents $193.5 million per year.

Proposed changes to statewide disaster relief

McMaster recounted the massive effects of Tropical Storm Helene on South Carolina, including damage to nearly 6,300 homes and $621 million in agricultural damages across the 20 million acres of state jurisdiction.

He noted that as of Jan. 29, there were about 441,000 applications to the Federal Emergency Management Agency (FEMA). In the future, he would like to circumvent the disaster relief process further, proposing a $150 million appropriation to create a “South Carolina Public Assistance Program” administered by the South Carolina Emergency Management Division.

This state grant program would allow local government, public utilities, charities, and nonprofit agencies to apply for state disaster recovery funds denied by the federal government or those that did not meet FEMA thresholds for damage reimbursement.

“That’s how we take care of our people,” he said of the proposed changes.

Consolidation of two statewide mental health agencies

McMaster proposed reviewing and funding the state’s behavioral health delivery systems. He described a fragmented and confusing process that people seeking services must navigate while others in need are never treated or fall through the cracks because the agencies responsible for helping don’t collaborate or communicate.

“We must fix this,” he said, recommending consolidating the Department of Mental Health and Department of Disabilities and Special Needs as cabinet-level agencies accountable to the governor. 

Newly proposed neurological health center in South Carolina

He also proposed lawmakers assist in funding a new neuro-health rehabilitation center with 80 beds for critical care and 32 beds for neurological rehabilitation. The newly constructed health facility would be managed by the Department of Health & Human Services and operated by the University of South Carolina.

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Increase minimum salaries for teachers

Eight years ago, the state’s minimum starting teacher salary average was $30,113, which was below the Southeast average. McMaster said the goal was to raise the average salary to $50,000 by 2026.

The governor said the starting minimum salary now stands at $47,000, which exceeds the Southeast average. He said teacher salaries increased by 56.1 percent, higher than in Georgia and North Carolina.

To stay competitive and attract the “best and brightest,” McMaster recommended lawmakers increase the minimum salary for teachers in the state to $50,000 this year.

“Educating our children is the most important thing we do,” he said.

Funding for school choice

In addition, McMaster vouched for continuing investments in K-4 programs, stating that state-funded, low-income households enrolled in the programs have been shown to produce students who excel with the necessary skills to learn.

He asked lawmakers to help him establish an “Education Scholarship Trust Fund Bill,” requesting $30 million to help low-income families choose the education and environments that best suit their children. He asked that the bill address last year’s state Supreme Court ruling that public money could not be used to pay for private education.

Debit cards for Education Lottery tickets

McMaster proposed to allow debit card purchases of South Carolina Education Lottery tickets as the statewide lottery commission estimates debit card purchases would generate an additional $52 million that could be used for education purposes.

Safety resource officers in schools

According to McMaster, integrating safety resource officers into all 1,284 public schools is a top priority. He said there are 177 schools in the state without the officers.

He proposed that the state’s Department of Public Safety fund and administer an SRO grant program by the year’s end to ensure parents’ safety and comfort.

Continued freeze on South Carolina public college tuition

For the sixth consecutive year, the governor requested a freeze on tuition for in-state students who attend public colleges, universities, and other higher learning institutions in South Carolina. In exchange, the schools would receive metric-based appropriation and incentives.

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In addition, for the fourth straight year, $80 million is expected to support college students at public institutions who qualify for federal Pell grants. Private, independent, and historically Black colleges and universities would receive an additional $20 million in tuition assistance.

Proposed increases for law enforcement, prisons

The governor proposed $14.5 million in pay raises for hiring new officers across South Carolina. He recommended a $2,000 state income tax credit for every active duty first responder employed by a public entity, totaling around $43 million in tax relief.

McMaster’s executive budget recommends the South Carolina Department of Corrections receive a new appropriation of $43.2 million for cell phone and contraband confiscation, increase correction officers, deferred maintenance, and medical and mental health at the 21 prisons across the state.

He also mentioned providing additional funding to the South Carolina Law Enforcement Division to increase dog fighting prevention efforts.

For a full breakdown of McMaster’s speech, go to the S.C. Governor’s Office website.

– A.J. Jackson covers business, the food & dining scene and downtown culture for The Greenville News. Contact him by email at ajackson@gannett.com, and follow him on X (formally Twitter) @ajhappened. This coverage is only possible with support from our readers. Sign up today for a digital subscription.