The House and Senate met on Wednesday to adopt the budget conference committee report and several other conference committee reports. Retiring legislators and other legislators who lost primary elections shared words of wisdom and parting thoughts with each chamber. The General Assembly does not plan to return in session again this year.  

Conference committee reports 
At the end of the regular session on May 9, the Municipal Association was tracking two bills – S1017, the property tax exemption bill, and S577, a bill that included military TIF language, that were assigned a conference committee. 

A conference committee was assigned and scheduled for S1017. The meeting was canceled, however, and the committee members could not come to an agreement between the House and Senate versions of the bill. Because no action was taken, the bill is dead for this year and must be reintroduced in a new legislative session. 

A conference committee was assigned for S577, a bill that was amended to include the military tax increment financing language. The conferees did not meet in a formal meeting, but agreed to a conference report that excluded language from H4552, the military TIF bill. The conference report for S577 was adopted without the military TIF language. Because that portion was removed, a military TIF bill will have to be reintroduced in a new legislative session.  

State Budget passed by the General Assembly 
House and Senate members could not agree on a single version of the state budget, so a budget conference committee was appointed. The budget conferees came to an agreement on both versions of the last week and adopted H5100, the state budget bill.  

Included in the final budget are the following items relevant to cities and towns:  

• $13.8 million added to the Local Government Fund base amount. The legislature fully funded the LGF at 5% for FY 2024-2025 in accordance with Act 84, which passed in 2019;   

• $200 million in onetime nonrecurring funds to county transportation committees, also known as CTCs, for secondary and low-volume primary roads;   

• $750,000 for post-traumatic stress disorder treatment services for first responders;  

• $107 million to cover the state’s share of a projected 11.8% increase in premiums for the State Health Plan (see proviso 108.6 below); 

• $3 million in recurring dollars to fund the Volunteer Strategic Assistance and Fire Equipment program, or V-SAFE program;   

• $12 million to the Rural County Stabilization Fund;    

• $1.1 million for tourism promotions;  

• $10 million for destination-specific grants;   

• $30 million to the SC Office of Resilience for disaster relief;  

• $1 million in nonrecurring funds to supplement the state’s 10 councils of governments;     

• $3.8 million in recurring dollars for the Firefighter Cancer Fund;     

• $18 million to the SC Conservation Bank for Grant Funding;  

• $1 million in one-time dollars for the Serve and Connect law enforcement community connection program;  

• $100 million for the Bridge Acceleration fund;  

• $100 million for the Bridge Modernization fund;  

• $2 million for SC Parks, Recreation and Tourism for tourism development;  

• $1 million with the SC Department of Transportation for a statewide road litter program;  

• $11.4 million for the Water Quality Revolving Loan Fund match through the SC Rural Infrastructure Authority;  

• $16 million in funds for the Rural Infrastructure Fund;  

• $15 million in one-time dollars for the Statewide Water and Sewer Fund;  

• $2.54 million towards the Alternative Transportation Program through the SC Department of Mental Health; 

• $1 million to the SC Department of Administration for first responders’ 800MHz communication modernization; and  

• $11.5 million to the SC Election Commission for election operations. 

Provisos of Interest:  

Homestead Exemption Fund: 118.22. This new proviso directs the $600 million from the Homestead Exemption Fund be distributed as a one-time, nonrecurring appropriation by September 30, 2024, for the following purposes listed in order of priority: 

 $99.5 million to the General Fund to accelerate the income tax reduction to 6.2%; 

• $200 million to the County Transportation Committee Acceleration Fund; 

• $100 million to SC Department of Transportation for the Bridge Acceleration Fund; 

• $117.4 million to SC Department of Transportation for the Rural Road Safety Program; 

• $15 million to Rural Infrastructure Authority for the Rural Infrastructure Fund; 

• $15 million to Rural Infrastructure Authority for the Statewide Water/Sewer Fund; and 

• $53 million to the University of South Carolina Health Sciences Campus for bond avoidance. 

Health Insurance Premium Increase: 1086. Of the funds authorized for the State Health Plan pursuant to Section 1-11-710(A)(2) of the 1976 Code, an employer premium increase of 11.8% and a subscriber premium increase of zero percent will result for the standard State Health Plan for Plan Year 2025. Notwithstanding the foregoing, pursuant to Section 1-11-710(A)(3), the SC Public Employee Benefit Authority may adjust the plan, benefits, or contributions of the State Health Plan during Plan Year 2025 to ensure the fiscal stability of the plan. 

Return to Work: 108.16.   

1. For compensation earnings during the current fiscal year, the earnings limitation does not apply if a member of the Police Officer Retirement System has not been engaged to perform services for a participating employer in the system or any other system provided in Title 9 for compensation in any capacity, whether as an employee, independent contractor, leased employee, joint employee or other classification of worker for a period of at least 12 consecutive months subsequent to retirement. The exemption provided under this provision does not apply unless the member first certifies to the system that he satisfies the requirements for the exemption. If members inaccurately certify that they satisfy the requirements for the exemption provided in this provision, they are responsible for reimbursing the system for any benefits wrongly paid them. 

2. For compensation earnings during the current fiscal year, the earnings limitation does not apply if a member of the South Carolina Retirement System has not been engaged to perform services for a participating employer in the system or any other system provided in Title 9 for compensation in any capacity, whether as an employee, independent contractor, leased employee, joint employee or other classification of worker for a period of at least 12 consecutive months subsequent to retirement. The exemption provided under this provision does not apply unless the member first certifies to the system that he satisfies the requirements for the exemption. If  members inaccurately certify that they satisfy the requirements for the exemption provided in this provision, they are responsible for reimbursing the system for any benefits wrongly paid to them.  

Credit Unions: 117.185. For Fiscal Year 2024-25, a federal or state credit union that is headquartered in the state may act as a qualified public depository for deposits held by a municipality if the population of the municipality is less than 5,000, the municipality is not part of a federally recognized metropolitan statistical area, is located at least 10 miles from a bank or credit union branch, and occupies and supports a full-service branching facility in the defined area. The credit union must comply with all other provisions of SC Code Section 6-5-15, and its deposits must be insured by the National Credit Union Share Insurance Fund. 

For questions about the budget, contact Joannie Nickel (jnickel@masc.sc) at 803.354.4794.  

From the Dome to Your Home Podcast