{"id":2996,"date":"2026-07-10T17:08:07","date_gmt":"2026-07-10T17:08:07","guid":{"rendered":"https:\/\/usmovingexpertss.com\/?p=2996"},"modified":"2026-07-10T17:08:07","modified_gmt":"2026-07-10T17:08:07","slug":"sc-budgets-over-150m-a-year-to-pay-back-debt-most-is-spent-elsewhere-later-2","status":"publish","type":"post","link":"https:\/\/usmovingexpertss.com\/?p=2996","title":{"rendered":"SC budgets over $150M a year to pay back debt. Most is spent elsewhere, later"},"content":{"rendered":"
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As budget negotiators try to come to an agreement on a spending plan for South Carolina, one of the key differences in the proposed budgets is how much to set aside to pay back state debts.<\/p>\n

Read more Power vs. property: SC landowners fight back against energy company over pipeline<\/a><\/p>\n

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The House has proposed a . The Senate has a $15.26 billion budget. A six-member conference committee has been trying to reconcile the $279 million difference in the proposed spending plans.<\/p>\n

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The main sticking points have been whether to include a $247.7 million property tax cut for seniors and how much to spend in lawmakers directed earmarks. The Senate has proposed $130 million in senator-sponsored projects. The House proposed <\/p>\n

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Conference committee members, , agree there isn\u2019t enough money to pay for a property tax cut bill and all the earmarks. Without a budget in place for the fiscal year that began July 1, the state is operating under a continuing resolution, which keeps spending levels the same as the previous year.<\/p>\n

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Accounting for the tax cuts requires reductions in spending or relying on the state\u2019s growth to make sure the state could afford to forgo revenue.<\/p>\n

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Part of the Senate\u2019s spending plan relies on redirecting the amount set aside every year to pay back debt.<\/p>\n

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In 2022, the state set aside $191 million to pay back debt. The Senate Finance Committee proposed reducing that amount by $100 million, a move that ultimately wasn\u2019t taken. That year, Senate Finance Chairman Harvey Peeler\u2019s first year running the committee, lawmakers approved an income tax cut as well as a $1 billion income tax rebate.<\/p>\n

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The following year, the Senate wanted to reduce the annual debt service line by $110 million. The same year lawmakers sent $102 million to Clemson<\/u> to start construction of a veterinary school, which is named for Peeler. Lawmakers did reduce the debt service line by $37.7 million a year.<\/p>\n

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In the 2024-25 budget, lawmakers reduced the debt service line by $10 million, after the Senate pushed for a $95 million reduction.<\/p>\n

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In the 2025-26 year, the House got its way when the General Assembly opted to increase the debt service line by $10 million, when the Senate wanted it cut by $95 million.<\/p>\n

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Now for this year\u2019s budget, the Senate wants to reduce the debt service line by $117 million from the $153.9 million level it was at last year.<\/p>\n

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The Senate wants to put that $117 million into the recurring dollar pot. Removing the money permanently from the debt service line could help pay for other costs and help pay for tax cuts.<\/p>\n

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