Myrtle Beach, SC, February 19, 2026
The South Carolina House of Representatives has approved a budget plan that includes a 2% pay increase for state employees and significant raises for teachers. This initiative is part of a $15.4 billion spending package aimed at retaining talent and supporting essential services. The budget increases teacher salaries, addressing challenges within the education sector, and signals a stable economic outlook for small businesses in towns like Myrtle Beach. By investing in the workforce, the plan aims to enhance community prosperity across South Carolina.
WHAT’S HAPPENING
What is the South Carolina House budget plan proposing for state employees and teachers?
Approves a 2% across-the-board pay raise for state employees and a $2,000 boost for every K-12 teacher salary lane, aiming to bring the lowest-paid teachers to $50,500 annually. This initiative is designed to retain talent and support essential services statewide.
How much is the state of South Carolina investing in this new budget plan?
Commits to a $15.4 billion spending package that includes nearly $67 million for state employee raises and $150 million for teacher salary increases. Additionally, $34 million is allocated to cover increases in employee insurance premiums.
What tax changes are included in the approved budget plan?
Introduces proposals to reduce the top income tax rate from 6% to 5.39% and expand property tax breaks by $130 million. These measures aim to stimulate private sector growth and enhance residents’ financial well-being.
Why are South Carolina tax refunds for 2025 returns being delayed?
Experiences delays because South Carolina does not conform to the federal One Big Beautiful Bill Act (OBBBA), causing certain federal deductions to be added back to taxable income. Electronic refunds are estimated to take up to eight weeks from February 2 or the filing date.
How will this new state budget impact local economies like Myrtle Beach?
Boosts local economies by increasing disposable income for state employees and fostering a more skilled talent pool through education investments. This supports small businesses, attracts new corporations, and contributes to year-round economic development in thriving areas like Myrtle Beach.
Myrtle Beach, SC
South Carolina House Budget Plan Boosts State Employee and Teacher Pay, Fuels Economic Optimism
The South Carolina House of Representatives has approved a budget plan poised to deliver a 2% pay increase for state employees and a significant boost to teacher salaries, reflecting a commitment to public service and fostering a stronger state workforce. This move, part of a broader $15.4 billion spending package, underscores the state’s focus on retaining talent and supporting essential services, ultimately contributing to a robust economic environment across communities like Myrtle Beach.
For small businesses and entrepreneurs in Myrtle Beach and across the Palmetto State, these investments in the state’s workforce signal a stable economic outlook. Competitive compensation for public servants helps to maintain a skilled and dedicated workforce, which, in turn, supports the broader economic ecosystem. The proposed budget also addresses key areas such as infrastructure and tax considerations, elements crucial for continued growth and prosperity.
A Commitment to State Employees and Education
Under the recently approved budget plan by the House Ways and Means Committee, all state employees in South Carolina are set to receive a 2% across-the-board pay raise. This initiative is estimated to cost the state nearly $67 million. This increase aims to make state employment more competitive, particularly following a 2024 study that indicated South Carolina’s base pay for state employees lagged approximately 15% behind the market median.
Beyond the general state employee increase, the budget places a strong emphasis on education. K-12 teachers are slated for substantial raises, with every lane of the state’s teacher salary schedule receiving a $2,000 boost. This measure, costing $150 million, is designed to elevate the state’s lowest-paid teachers to an annual salary of $50,500, fulfilling a goal set by Governor Henry McMaster four years ago to reach a $50,000 salary floor by 2026. This commitment to increasing teacher compensation is viewed as a vital step toward attracting and retaining skilled educators, which directly benefits the quality of education and, by extension, the future workforce in communities across South Carolina.
Key Features of the State Budget Plan
| Feature | Detail | Scope |
|---|---|---|
| State Employee Pay Increase | 2% across-the-board raise, costing approximately $67 million. | State-level |
| Teacher Salary Increase | $2,000 boost for every lane of the teacher salary schedule; lowest-paid teachers to reach $50,500 annually. | State-level |
| Employee Insurance Premiums | $34 million allocated to cover increases in employees’ insurance premiums to prevent out-of-pocket costs. | State-level |
| Total Budget Package | $15.4 billion spending plan. | State-level |
| Income Tax Cuts | Proposal to reduce the 6% top income tax rate down to 5.39%. | State-level |
| Property Tax Breaks | Plan allows for a $130 million expansion of property tax breaks. | State-level |
| Tax Refund Delays (2025 returns) | Processing taking longer due to South Carolina not conforming to the federal One Big Beautiful Bill Act (OBBBA). Expected to take up to 8 weeks for electronic filings from February 2 or filing date. | State-level |
Economic Foundations and Tax Considerations
The state’s overall financial health is a crucial backdrop to these budget decisions. South Carolina has experienced consistent economic expansion, with significant population growth and an expanding economy contributing to increased opportunities across the state. Ways and Means Chairman Bruce Bannister noted the state’s “extraordinary success” in recent years, highlighting population growth and economic expansion as key drivers. This growth provides the fiscal capacity for strategic investments in the state workforce.
The House budget also includes provisions for tax relief, a measure often favored by those seeking to stimulate private sector growth and allow individuals to retain more of their earnings. The plan accounts for nearly $250 million in income and property tax cuts that could become law this year. Specifically, there is a proposal to reduce the top income tax rate from 6% to 5.39%, and a plan to expand property tax breaks by $130 million. Such measures aim to enhance the financial well-being of residents and potentially encourage further investment within the state.
Challenges in Tax Processing
While the state budget moves forward, taxpayers are facing some challenges with the current tax season. South Carolina tax refunds for 2025 returns are experiencing delays, primarily because the state currently does not conform to the federal One Big Beautiful Bill Act (OBBBA). This lack of conformity means that certain federal deductions, such as additional standard deductions, deductions against tip and overtime income, and car loan interest, are being added back to taxable income in South Carolina, potentially resulting in reduced refunds or even unexpected tax liabilities for some residents. Electronic refunds are currently estimated to take up to eight weeks from February 2 or the date of filing, whichever is later. This situation underscores the importance of clear and consistent tax policy to ensure a smooth and predictable process for individuals and businesses alike.
Impact on Local Economies like Myrtle Beach
For Myrtle Beach SC business owners and employees, these statewide budget decisions have tangible implications. A better-compensated state workforce means more disposable income circulating within local communities, supporting Myrtle Beach small businesses, restaurants, and service providers. Investments in education create a more skilled talent pool, which is attractive to existing businesses and new South Carolina entrepreneurs looking to establish or expand their operations.
Myrtle Beach continues to experience significant economic growth, moving beyond its traditional identity as solely a tourist destination to a thriving hub for commerce and industry. Major corporations are establishing a presence in the region, creating year-round employment opportunities and stimulating further economic development. The state’s ongoing commitment to infrastructure improvements and economic development initiatives further supports this positive trend, contributing to a robust environment for private investment and job creation in Horry County.
A Vision for Sustainable Growth
The South Carolina House budget reflects a strategic effort to cultivate a thriving state economy through targeted investments and responsible fiscal management. By prioritizing competitive pay for state employees and educators, along with considering tax relief, the state is laying a foundation for continued prosperity. This approach supports individual achievement and fosters an environment where entrepreneurial innovation can flourish.
As these budget plans move through the legislative process, the focus remains on ensuring that South Carolina continues to be a desirable place to live, work, and invest. For residents and businesses in Myrtle Beach, SC, staying informed and engaged in these discussions is crucial for contributing to the ongoing economic success of our vibrant community.
We encourage our readers to support local businesses and remain active participants in shaping Myrtle Beach’s economic future.
Deeper Dive: News & Info About This Topic
HERE Resources
Myrtle Beach Sees Economic Lift with New Nonstop Flights
New Thrift Store Sparks Community Support, Boosts Local Economy
Myrtle Beach Celebrates Valentine’s Day with Unique Dining Experiences
Candidates Present Visions for Crescent Beach Council Seat
SC Safe Home Grant Reopens: Secure Your Home, Strengthen Our Coast
Myrtle Beach Welcomes Second Amazon Facility
Tickets Now Available for Myrtle Beach Classic PGA TOUR Event
HBCUs Chart Course for Financial Recovery and Growth
Horry County Stormwater Project Advances with Extended Road Closure
New Leadership Bid: Keith VanWinkle Enters Horry County School Board Chair Race
Author: STAFF HERE MYRTLE BEACH
The HERE Myrtle Beach Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Myrtle Beach community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Myrtle Beach Our team includes lifelong Myrtle Beach residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent developments along the Grand Strand, Myrtle Beach’s tourism and hospitality industry, and growth in local education sectors (e.g., Coastal Carolina University programs). Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Myrtle Beach Area Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
