Gov. Henry McMaster celebrated South Carolina’s historic year of growth and economic development in his annual State of the State address Wednesday night.
McMaster noted that South Carolina is the third-fastest growing state in the country. South Carolina experienced record economic growth, with announcements of 120 projects, 14,000 new jobs, and $10.27 billion in new capital investment. Additionally, foreign direct investment quadrupled last year compared to 2021.
Infrastructure is key to this growth. McMaster pointed to the Port of Charleston, two inland ports in Dillon and Greer, and 2,300 miles of rail lines as driving economic activity in South Carolina.
In another sign of strong growth, McMaster shared that accommodations tax collections were up almost 50% in the 2021-22 fiscal year compared to 2019. The tourism industry continues to be a key economic driver for South Carolina.
To remain competitive with other states and to maintain South Carolina’s recent economic growth, McMaster turned to tax policy. He noted passage last year of a significant reduction in state income tax. Depending on state revenue collections, McMaster may request an acceleration of the tax cut schedule this year.
Notably, McMaster would also like to apply $500 million to the Department of Commerce to “satisfy all outstanding obligations and incentives without borrowing money,” and $200 million for mega-site development. These would be one-time appropriations and shows McMaster’s commitment to empowering Secretary of Commerce Harry Lightsey to continue to deliver economic wins for South Carolina.
Recent economic success creates challenges and opportunities. “Our successes are outrunning our infrastructure,” McMaster said.
To meet ongoing road infrastructure needs, McMaster has proposed $850 million to continue acceleration of projects aimed at relieving traffic congestion. This proposal is in addition to $1 billion appropriated last year for road projects.
McMaster also has a focus on workforce development. He has proposed a $78 million investment to expand Workforce Scholarships for the Future through the South Carolina Technical College System. Over the past two years, 10,000 residents have earned industry credentials through the program in careers including manufacturing, healthcare, and information technology.
McMaster is calling for increases to teacher pay. The minimum starting salary in South Carolina is now $40,000, up from $30,000 just six years ago. McMaster is proposing an increase of $2,500 at each step of the salary schedule, as well as a one-time $2,500 retention supplement for each eligible public-school teacher.
For information about the Charlotte Regional Business Alliance’s Legislative Agenda, click here.
