Columbia, South Carolina – As state tax collections once again exceed forecasts, South Carolina’s finances continue to improve. This gives lawmakers greater freedom as they get ready for the next budget cycle.
Recently, the state Board of Economic Advisors gathered to look over the most recent numbers and make its first revenue prediction for the 2026–27 fiscal year.
The board said that individual income tax and sales tax receipts were higher than expected, which brought the state’s total revenue $244 million over what was expected in May.
The improvements are due to strong consumer spending and good income tax performance, both of which have helped the state’s revenue picture stay stable as the next fiscal year approaches.
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The Board of Economic Advisors currently thinks that the General Fund will bring in little over $15 billion for FY 2026–27, based on the new information. The new prediction gives lawmakers an extra $733.9 million in recurring revenue and $1.71 billion in one-time money to think about while formulating the budget this year. The mix of recurring and one-time revenue is likely to have a big impact on how the State House decides to spend money.
Governor Henry McMaster’s executive budget plan for the 2026–27 fiscal year will be based on the new revenue estimate. The governor is likely to announce his budget plan in early January. He will use the board’s forecasts to decide how much money to spend and what to spend it on.
State departments have already sent in their requests for money for the next fiscal year in order to prepare ready for the budget process. Budget writers are now looking at those demands and deciding how to best use the increased resources.
As they seek to finish a budget that shows how strong the state’s finances are right now, lawmakers will have to balance the demands of agencies with the need for long-term economic stability.
State authorities start the budget season with a better financial outlook since revenues keep coming in higher than expected. This sets the stage for important spending and policy decisions in the coming months.
