Does the SC state budget include a property tax cut? Not so much, and here’s why

In a mailer sent by state Rep. Heather Bauer, D-Richland, the first-term state lawmaker touted how the state budget includes a $500 million property tax cut, a $1,000 raise for state employees and money for the veterinary school.

But not all of the spending moves she highlights are exactly true.

In the mailer, Bauer said the budget includes a $500 million one-time property tax cut. A property tax credit was the original plan proposed by House budget writers, but later abandoned because of concerns from county treasurers that it would appear property taxes would go up the following year.

It was a plan that only benefited people who live in owner-occupied houses.

Budget writers, and lawmakers ultimately, approved a plan to accelerate the planned income tax cut. The maximum tax rate is going to 6.2% about six months ahead of schedule, pending final approval from Gov. Henry McMaster. The governor is expected to sign the budget by Wednesday.

Bauer also said the budget includes $175 million for veterinary school construction at Clemson University. Budget writers only included $125 million for construction of the project . (The budget also includes $8 million in ongoing annual dollars for the veterinary school).

Bauer also touched on state employee raises, a key concern for a representative from Richland County, where thousands of state employees live.

She said state employees earning less than $66,667 a year would receive a $1,000 raise. Those earning more would receive a 1.5% raise. That plan was the original house plan.

But when the final budget was put together, the state employee raise was set at $1,125 for any state employee earning $50,000 or less. Those earning more than $50,000 will receive a 2.25% pay increase.

House Democratic Caucus Executive Director Nick Sottile said the information on the mailer was printed before the final budget was approved.

The caucus staff had a deadline to finish printing before the budget was passed and to send out the mailers. The caucus did not include a disclaimer saying the budget had yet to be finalized as of the printing, Sotille said.

“They do this for us at the end of every session,” Bauer said. “Obviously we vote for those larger items, but my primary goal is to get money for my district, which I did. That’s what I’m most proud of, on top of the pay increase for teachers. That’s my main focus is taking care of my district.”

The mailer highlights earmarks included in the budget. Bauer sponsored requests for $400,000 for The Therapy Place to provide speech and therapy needs for underserved families in the district, $100,000 for ColaJazz to support Columbia arts and $50,000 for EMS Close to provide clothing needs for underserved children.

Bauer, however, conflated two accounting issues the state government faced over the last two years.

“Last year we forced an incompetent comptroller general from office after he lost track of $1.8 billion (that’s right, billion),” Bauer wrote. “When he refused to resign, I proposed an amendment to reduce his salary to $1, which passed with overwhelming bipartisan support. Then he resigned.”

Actually previous Comptroller General Richard Eckstrom resigned last year after he admitted to inflating the state’s overall cash balances by $3.5 billion.

House members overwhelmingly voted in 2023 to reduce Eckstrom’s salary to $1 , which was a proposal pushed by Bauer. Most of the state Senate later signed on to a resolution to remove Eckstrom for willful neglect of duty.

As the writing was on the wall of Eckstrom’s fate, he resigned before removal proceedings could begin.

This year officials were faced with trying to figure out the origins of a $1.8 billion sitting in a state bank account with much of the heat coming down on state Treasurer Curtis Loftis . Loftis remains in office as a taskforce put together by Gov. Henry McMaster tries to determine where the money came from.

Bauer is a first-term state representative who will have a rematch against former state Rep. Kirkman Finlay, R-Richland, in November’s election.

Bauer defeated Finlay in 2022 by 235 votes out of the 14,792 votes cast.