Governor Henry McMaster this week released his proposed 2026–2027 executive budget, outlining how the state plans to deploy a $2.7 billion surplus amid continued population growth and strong economic momentum.

For South Carolina’s business community, the proposal reinforces a familiar theme: growth is real, but sustaining it will require disciplined investment in infrastructure, workforce readiness and long-term planning. Below are the key takeaways most relevant to employers, investors and civic leaders.

A strong fiscal position

The governor cited a $2.7 billion surplus and proposed placing $1.4 billion into the state’s rainy day fund. Together, these moves underscore South Carolina’s emphasis on fiscal stability. For businesses, strong reserves help reduce future tax volatility and support long-term confidence in the state’s financial footing.

Infrastructure to keep pace with growth

Nearly $7 billion in road and bridge projects are currently underway statewide, a sharp increase from 2017 levels. To prevent inflation-driven delays, the budget proposes directing $1.1 billion in surplus funds to keep projects moving.

Just as notable, the governor called for a comprehensive 10- and 20-year study to assess whether infrastructure and government services can keep pace with population and industrial growth. For fast-growing regions like greater Charleston, where congestion, water capacity and freight movement are ongoing concerns, this long-range planning could be critical.

Continued focus on tax competitiveness

The proposal includes additional personal income tax relief, building on prior reductions, and reiterates the governor’s long-term goal of continued rate cuts if growth allows. While final figures will be refined by the General Assembly, the direction signals an ongoing effort to remain competitive for talent and investment.

Workforce development from early education to job training

The budget continues heavy investment in the talent pipeline. Highlights include:

• A call to raise minimum starting teacher pay to $50,500
• Expanding access to full-day 4K education
• Proposing universal free breakfast for public school students
• Freezing in-state public college tuition
• Maintaining $95 million for SC WINS workforce scholarships through the technical college system

For employers, these investments support both near-term labor participation and long-term workforce quality, particularly in high-demand fields such as manufacturing, health care, IT and logistics.

Health care capacity and quality of place

A proposed $115 million investment would support a comprehensive cancer center at MUSC, reinforcing health care access and research capacity. The executive budget also recommends $100 million to the two gubernatorial cabinets working to improve and modernize access to healthcare delivery systems.

Disaster recovery and business continuity

The proposal includes $20 million to establish a state disaster recovery assistance program to address gaps when federal aid falls short. Faster recovery supports business continuity and community stability after major events.

What it means for business

Overall, the proposed budget reflects a pro-growth posture focused on infrastructure, workforce readiness and fiscal stability. As lawmakers debate and refine the plan, these priorities will play a central role in South Carolina’s ability to attract talent, support employers and sustain growth, especially in high-demand regions like Charleston.