Historical South Carolina budget and finance information

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The historical South Carolina budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding South Carolina's budget and finances, click here.

As published 2016

South Carolina budget and finances

General information

Budget calendar: Annual

Fiscal year: 2017

State credit rating: AA+ (as of 2014)

Current governor: Nikki Haley

Financial figures

Total spending (state and federal funds): $22.6 billion (estimated for 2015)

Per capita spending: $4,607.09 (estimated for 2015)

Total state tax collections: $8.9 billion (2014)

Per capita tax collections: $1,849.71 (2014)

State debt: $71.1 billion (as of 2014)

Per capita state debt: $15,053 (as of 2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in South Carolina

In South Carolina, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2014 and 2015, total government spending in South Carolina increased by approximately $0.6 billion—from $22.0 billion in fiscal year 2014 to an estimated $22.6 billion in 2015. This represents a 2.5-percent increase.

In South Carolina in fiscal year 2014, 51.8 percent of total tax revenues came from sales and gross receipts.

Education accounted for 42 percent of state expenditures in fiscal year 2015, while 24.6 percent went to Medicaid.

The South Carolina state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.

Compared to neighboring states, South Carolina had the third highest state tax collections per capita, at $1,850.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
South Carolina	$21,664	$4,628,363	$471,862	$3,750,341	$60,334	$8,932,564	4,829,160	$1,850
Georgia	$788,350	$7,310,132	$609,944	$9,909,378	$10,698	$18,628,502	10,097,132	$1,845
North Carolina	N/A	$9,978,484	$1,600,058	$11,751,148	$67,061	$23,396,751	9,940,387	$2,354
Tennessee	N/A	$8,758,085	$1,335,392	$1,416,190	$296,662	$11,806,329	6,547,779	$1,803
Virginia	$35,561	$6,063,182	$795,515	$11,618,200	$436,814	$18,949,272	8,328,098	$2,275
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

South Carolina tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 51.8 percent of South Carolina's total state tax collections came from sales taxes and gross receipts.

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
South Carolina	0.2%	51.8%	5.3%	42.0%	0.7%
Georgia	4.2%	39.2%	3.3%	53.2%	0.1%
North Carolina	N/A	42.6%	6.8%	50.2%	0.3%
Tennessee	N/A	74.2%	11.3%	12.0%	2.5%
Virginia	0.2%	32.0%	4.2%	61.3%	2.3%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of South Carolina’s general revenues came from the federal government in 2013. That year, South Carolina received approximately $6.7 billion in federal aid, 30.2 percent of the state's total general revenues. Taking into consideration the state's 2013 population, this came out to about $1,403 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
South Carolina	$6,698,952	30.2%	30	4,774,839	$1,403
Georgia	$14,323,163	37.3%	7	9,992,167	$1,433
North Carolina	$15,470,808	32.5%	25	9,848,060	$1,571
Tennessee	$10,819,977	39.5%	3	6,495,978	$1,666
Virginia	$9,412,343	22.9%	47	8,260,405	$1,139
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

South Carolina's total estimated government spending in fiscal year 2015 was $22.6 billion, which was the lowest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
South Carolina	$14,926	$7,631	$22,557	4,896,146	$4,607.09
Georgia	$30,593	$12,901	$43,494	10,214,860	$4,257.91
North Carolina	$30,426	$13,930	$44,356	10,042,802	$4,416.70
Tennessee	$18,806	$13,156	$31,962	6,600,299	$4,842.51
Virginia	$36,257	$9,706	$45,963	8,382,993	$5,482.89
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in South Carolina can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In fiscal year 2014, Medicaid accounted for 24.6 percent of South Carolina's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
South Carolina	18.4%	23.6%	0.4%	24.6%	2.8%	6.5%	23.7%
Georgia	24.3%	18.8%	0.1%	21.6%	3.6%	5.9%	25.7%
North Carolina	22.4%	14.6%	0.5%	30.4%	4.5%	10.7%	16.8%
Tennessee	18.3%	14.2%	0.3%	30.6%	3.1%	5.7%	27.8%
Virginia	15.1%	15.2%	0.3%	17.2%	2.7%	12.0%	37.4%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2010 and 2014, the share of the South Carolina state budget spent on transportation decreased from 9.1 percent in 2010 to 6.5 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	18.4%	23.6%	0.4%	24.6%	2.8%	6.5%	23.7%
2013	15.9%	21.0%	0.4%	21.7%	2.7%	6.6%	31.7%
2012	15.9%	21.0%	0.4%	21.7%	2.7%	6.6%	31.7%
2011	17.3%	21.0%	0.5%	20.7%	2.5%	5.7%	32.3%
2010	17.1%	20.9%	0.3%	22.6%	2.8%	9.1%	27.0%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Fiscal year budgets

See also: Historical South Carolina budget and finance information

Fiscal year 2016

See budget bill: H 3701

Governor Nikki Haley announced her fiscal year 2016 budget proposal on January 12, 2015. This proposal recommended $6.881 billion in general fund spending, which was designed to fully fund state reserves. The budget also emphasized education improvements, social service reforms, and law enforcement and prosecution improvements.

Governor Haley signed the official state budget into law after making 87 vetoes. The final budget totaled approximately $7 billion and made investments in many of the areas recommended in the governor's proposal.

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, South Carolina had a state debt of approximately $71.1 billion. Its state debt per capita was $15,053. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
South Carolina	$71,105,557,000	$15,053	23
Georgia	$115,193,862,000	$11,612	39
North Carolina	$107,580,297,000	$11,032	42
Tennessee	$41,049,738,000	$6,358	50
Virginia	$91,339,102,000	$11,158	41
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), South Carolina ranked 18th worst in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of South Carolina’s Comprehensive Annual Financial Report from June 30, 2014, and actuarial reports for the state’s retirement plans, TIA concluded that $15.9 billion in promised retirement benefits were unfunded, but only $17.8 million of these liabilities were reported on South Carolina’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $13 billion, or a taxpayer burden of $9,700.

Public pensions

See also: South Carolina public pensions and South Carolina public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of South Carolina's state-administered pension plans decreased from 70.1 percent to 65.4 percent. The state paid 100 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $15.6 billion. This amounted to $3,468 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for South Carolina and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
South Carolina	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AAA
Georgia	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
North Carolina	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Tennessee	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA
Virginia	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Economic indicators

See also: Economic indicators by state

South Carolina's GDP increased by 2.2 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those employees who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

In September 2014, South Carolina had the lowest unemployment rate among its neighboring states, 6.6 percent. Most residents in the state earned incomes between 200 and 399 percent of the federal poverty level, with median annual household income of $43,716.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
South Carolina	16%	19%	35%	30%	$43,716	7.3%	6.6%	$183,561
Georgia	16%	21%	32%	31%	$47,753	8%	7.9%	$454,532
North Carolina	19%	21%	32%	28%	$44,254	7.7%	6.7%	$471,365
Tennessee	18%	20%	34%	28%	$42,785	8.2%	7.3%	$287,633
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official South Carolina budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. South Carolina CAFR South Carolina budget agency

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows

1. In August of the year preceding the start of the new fiscal year, the governor sends budget instructions to state agencies.
2. Between September and October, agencies submit their budget requests to the governor.
3. Budget hearings are held with state agencies in October.
4. In January, the governor submits his or her proposed budget to the state legislature.
5. Both the House and the Senate pass a budget. If these versions do not match, a conference committee consisting of both House and Senate members is assembled to reconcile the differences.
6. The legislature adopts a budget in May. The fiscal year begins July 1.

South Carolina is one of 44 states in which the governor has line item veto authority.

The governor is constitutionally required to submit a balanced budget to the legislature. In turn, the legislature must pass a balanced budget, and any budget signed into law by the governor must be balanced.

Agencies, offices, and committees

The following standing committees in the South Carolina State Legislature deal with budget and finance matters:

1. Finance Committee, South Carolina State Senate

Transparency

See also: "Following the Money" report, 2015

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, South Carolina received a grade of C+ and a numerical score of 78, indicating that South Carolina was "Middling" in terms of transparency regarding state spending.

As published 2015

State finances in the U.S.
State tax policy in the U.S.
Pension Policy
State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains: Spending (fiscal years 2013 and 2014) Revenues (fiscal year 2013) State debt (fiscal year 2012) Federal aid to the state budget (fiscal year 2012) Budget process

Between fiscal years 2013 and 2014, total government spending in South Carolina decreased by approximately $770 million, from $22.2 billion in fiscal year 2013 to an estimated $21.4 in 2014. This represented a 3.5 percent decrease. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned South Carolina a credit rating of AA+.

HIGHLIGHTS

In 2013, South's Carolina's state tax collections per capita equaled $1,828, the fifth-lowest in the nation.

Spending

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

In South Carolina in fiscal year 2014, total estimated government spending equaled $21.4 billion, a smaller amount than in any neighboring state.

Total estimated state spending, FY 2014 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
South Carolina	$14,445	$6,993	$21,438	4,832,482	$4,436.23
Georgia	$29,545	$11,834	$41,379	10,097,343	$4,098.01
North Carolina	$30,996	$12,850	$43,846	9,943,964	$4,409.31
Tennessee	$18,832	$13,231	$32,063	6,549,352	$4,895.60
Virginia	$35,123	$9,568	$44,691	8,326,289	$5,367.46
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers

Spending by function

Breakdown of spending by function in FY 2013. Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in South Carolina can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In South Carolina in fiscal year 2013, higher education accounted for 19.5 percent of total state expenditures, a greater share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
South Carolina	17.6%	19.5%	0.4%	22%	2.7%	5.4%	32.4%
Georgia	24.1%	19%	0.1%	21.3%	3.7%	5.7%	26.2%
North Carolina	24.8%	12.4%	0.5%	30%	4.6%	10.7%	17%
Tennessee	17.8%	13.9%	0.4%	30.8%	2.8%	6.1%	28.2%
Virginia	15.1%	15.3%	0.4%	16.7%	2.8%	11%	38.7%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2009 and 2013, the share of the South Carolina state budget spent on Medicaid decreased from 23 percent to 21.7 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2009 to 2013 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2013	15.9%	21.0%	0.4%	21.7%	2.7%	6.6%	31.7%
2012	15.9%	21.0%	0.4%	21.7%	2.7%	6.6%	31.7%
2011	17.3%	21.0%	0.5%	20.7%	2.5%	5.7%	32.3%
2010	17.1%	20.9%	0.3%	22.6%	2.8%	9.1%	27.0%
2009	17.0%	21.0%	0.3%	23.0%	2.9%	6.9%	28.9%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.

In South Carolina in 2013, total state tax collections equaled $8.7 billion, a smaller amount than in any neighboring state.

State tax collections by source ($ in thousands)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes	Total	2013 population	Per capita collections
South Carolina	$8,549	$4,476,982	$439,843	$3,357,518	$386,669	$51,744	$8,721,305	4,771,929	$1,827.63
Georgia	$61,052	$7,408,422	$744,401	$8,772,227	$797,255	$10,795	$17,794,152	9,994,759	$1,780.35
North Carolina	N/A	$9,714,217	$1,543,201	$11,068,166	$1,285,907	$157,087	$23,768,578	9,848,917	$2,413.32
Tennessee	N/A	$9,128,175	$1,421,174	$262,842	$1,256,173	$298,527	$12,366,891	6,497,269	$1,903.40
Virginia	$33,188	$6,192,666	$806,572	$10,900,860	$772,001	$481,566	$19,186,853	8,270,345	$2,319.96
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

South Carolina tax collections by source in 2013.
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In South Carolina, sales taxes and gross receipts accounted for 51.3 percent of total tax collections.

State tax collections by source (as percentages)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes
South Carolina	0.10%	51.33%	5.04%	38.50%	4.43%	0.59%
Georgia	0.34%	41.63%	4.18%	49.30%	4.48%	0.06%
North Carolina	N/A	40.87%	6.49%	46.57%	5.41%	0.66%
Tennessee	N/A	73.81%	11.49%	2.13%	10.16%	2.41%
Virginia	0.17%	32.28%	4.20%	56.81%	4.02%	2.51%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, South Carolina had a state debt of approximately $71.1 billion. Its state debt per capita was $15,053. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
South Carolina	$71,105,557,000	$15,053	23
Georgia	$115,193,862,000	$11,612	39
North Carolina	$107,580,297,000	$11,032	42
Tennessee	$41,049,738,000	$6,358	50
Virginia	$91,339,102,000	$11,158	41
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: South Carolina public pensions and South Carolina public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of South Carolina's state-administered pension plans decreased from 70.1 percent to 65.4 percent. The state paid 100 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $15.6 billion. This amounted to $3,468 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for South Carolina and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
South Carolina	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AAA
Georgia	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
North Carolina	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Tennessee	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA
Virginia	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.

The table below notes what share of South Carolina’s general revenues came from the federal government in 2012. That year, South Carolina received approximately $6.9 billion in federal aid, 32.41 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2012
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenue	Ranking
South Carolina	$6,892,660	32.41%	28
Georgia	$13,794,726	37.92%	7
North Carolina	$15,192,577	33.24%	25
Tennessee	$11,198,575	40.97%	3
Virginia	$9,278,113	23.53%	49
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

South Carolina received $4.39 billion in federal stimulus funding between February 2009 and June 2013.

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows

1. In August of the year preceding the start of the new fiscal year, the governor sends budget instructions to state agencies.
2. Between September and October, agencies submit their budget requests to the governor.
3. Budget hearings are held with state agencies in October.
4. In January, the governor submits his or her proposed budget to the state legislature.
5. Both the House and the Senate pass a budget. If these versions do not match, a conference committee consisting of both House and Senate members is assembled to reconcile the differences.
6. The legislature adopts a budget in May. The fiscal year begins July 1.

South Carolina is one of 44 states in which the governor has line item veto authority.

The governor is constitutionally required to submit a balanced budget to the legislature. In turn, the legislature must pass a balanced budget, and any budget signed into law by the governor must be balanced.

Agencies, offices, and committees

The following standing committees in the South Carolina State Legislature deal with budget and finance matters:

1. Finance Committee, South Carolina State Senate

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured the transparency and accountability of state websites with regard to state government spending. According to the report, South Carolina received a grade of D+ and a numerical score of 63, indicating that South Carolina was lagging in terms of transparency regarding state spending.

As published 2014

The information on this tab contains: Spending (fiscal year 2013) Spending by function (fiscal year 2012) Spending trends (fiscal years 2008 to 2012) Revenues (fiscal year 2013) Historical spending (fiscal years 2009 to 2012) Budget transparency

Between fiscal year 2009 and fiscal year 2013, South Carolina's total expenditures increased by approximately $1.534 billion, from $20.766 billion in 2009 to $22.300 billion in 2013. This represented a 7.39 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).

Spending

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:

• General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
• Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
• Federal funds: "Funds received directly from the federal government."
• Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)
State	General fund	Federal funds	Other funds	Bonds	Total	Per capita expenditures
South Carolina	$6,350	$7,792	$8,158	$0	$22,300	$4,670.31
Georgia	$18,303	$11,752	$10,211	$808	$41,074	$4,110.62
North Carolina	$20,602	$17,459	$12,543	$785	$51,389	$5,218.19
Tennessee	$12,622	$13,055	$5,394	$382	$31,453	$4,841.92
Virginia	$17,691	$9,546	$16,191	$1,167	$44,595	$5,398.65
Per-capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Spending by function

2012

Breakdown of expenditures by function in FY 2012
Source: National Association of State Budget Officers

State expenditures in South Carolina can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percentages)
State	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
South Carolina	15.9%	21.0%	0.4%	21.7%	2.7%	6.6%	31.7%
Georgia	24.0%	18.7%	0.1%	21.5%	3.7%	5.2%	26.8%
North Carolina	23.2%	9.0%	0.5%	24.7%	4.2%	9.9%	28.4%
Tennessee	17.7%	12.8%	0.4%	30.7%	2.7%	6.4%	29.3%
Virginia	16.0%	13.1%	0.4%	16.2%	2.9%	11.3%	40.1%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2008 and 2012, state expenditures for elementary and secondary education fell by nearly three percentage points, or 15.4 percent, as a share of the budget. During the same period, spending on higher education and Medicaid saw modest increases. The table below details changes in expenditures from 2008 to 2012. Fiscal year 2012 data is included in the table below. Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)
Year	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
2012	15.9%	21.0%	0.4%	21.7%	2.7%	6.6%	31.7%
2011	17.3%	21.0%	0.5%	20.7%	2.5%	5.7%	32.3%
2010	17.1%	20.9%	0.3%	22.6%	2.8%	9.1%	27.0%
2009	17.0%	21.0%	0.3%	23.00%	2.9%	6.9%	28.9%
2008	18.8%	20.6%	0.4%	21.1%	3.0%	7.5%	28.6%
Change in %	-2.9%	0.4%	0%	0.6%	-0.3%	-0.9%	3.1%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)
State	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
South Carolina	$2,448	$2,796	$265	$0	$742	$6,251	$1,309.15
Georgia	$5,226	$8,486	$706	$0	$3,562	$17,980	$1,799.41
North Carolina	$5,309	$10,958	$1,192	$0	$3,100	$20,559	$2,087.62
Tennessee	$6,643	$126	$1,083	$0	$3,551	$11,403	$1,755.39
Virginia	$3,249	$11,093	$821	$0	$1,259	$16,421	$1,987.92
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013. Source: National Association of State Budget Officers

In fiscal year 2013, personal income tax accounted for approximately 45 percent of all general fund revenues in South Carolina. Compared to the four neighboring states noted above, South Carolina's personal income tax to general fund ratio ranked fourth, behind 47 percent in Georgia, 53 percent in North Carolina, and 68 percent in Virginia.

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, South Carolina ($ in millions)
Year	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
2013	$2,448	$2,796	$265	$0	$742	$6,251	$1,309.15
2012	$2,354	$2,592	$212	$0	$700	$5,858	$1,240.20
2011	$2,245	$2,396	$183	$0	$809	$5,633	$1,205.30
2010	$2,191	$2,144	$149	$0	$771	$5,255	$1,133.43
2009	$2,248	$2,327	$207	$0	$762	$5,544	$1,215.46
Change in %	8.90%	20.16%	28.02%	N/A	-2.63%	12.75%	7.71%
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported Total Expenditures in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).

Historical state spending in South Carolina ($ in millions)
Fiscal year	General Fund		Other funds		Federal funds		Bonds		Budget totals
	Total	% of Budget	Total	% of Budget	Total	% of Budget	Total	% of Budget
2011-2012	$5,517	25%	$9,284	42%	$7,164	32%	$123	1%	$22,088
2010-2011	$5,275	24%	$9,821	44%	$6,988	31%	$104	0%	$22,188
2009-2010	$5,146	26%	$7,691	39%	$6,779	34%	$86	0%	$19,702
Averages:	$5,313	25%	$8,932	42%	$6,977	33%	$104	0%	$21,326

Budget transparency

Transparency evaluation
Searchability	Y
Grants	N
Contracts	Y
Line item expenditures	Y
Dept./agency budgets	N
Public employee salaries	N
Last evaluated in 2009.

South Carolina Spending Transparency is the publicly available website created by the South Carolina government. It discloses information about South Carolina's spending, and is managed by the Comptroller. South Carolina's current Comptroller, Richard Eckstrom, has written extensively on the importance of state and local transparency. In December 2008, he wrote:

"Earlier this year, I worked with Gov. Mark Sanford to create an easy-to-use spending transparency website. It contains detailed spending information for more than 80 state agencies, giving the public more access than ever to information about how state government spends its hard-earned tax dollars. This website, which is available through my office’s site (www.cg.sc.gov), is serving as a national model for other states attempting their own transparency initiatives. Several states have contacted me hoping to duplicate our open-government ideas."

Government tools

See also: Evaluation of South Carolina state website

South Carolina Spending Transparency provides a searchable expenditures database.

The table to the right is helpful in evaluating the accessibility and scope of the information provided by the South Carolina Spending Transparency page.

Support for creation of the database

Governor Mark Sanford signed South Carolina Executive Order 2007-14 on August 30, 2007. The order required the Comptroller to compile and disclose information concerning how the state agencies of South Carolina allocate revenues.

Exempted accounts

In 2012, 13 state agencies pushed to make 65 separate accounts exempt from oversight, meaning that the money in those accounts could only be reviewed by people inside the agency. Agencies are allowed to apply for such status with the Budget and Control Board if "release of the information would be detrimental to the state or agency."

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for South Carolina, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. South Carolina tied for eighth in the nation with 11 other states, earning six out of eight possible points.

South Carolina - IGPA score for budget process, contents and disclosure
Budget transparency indicator	Yes or no?
Performance measures
"Generally Accepted Accounting Principles" budget	N
Multi-year forecasting
Annual cycle
Binding revenue forecast	N
Legislative revenue forecast
Nonpartisan staff
Constitution or statutory tax/spend limitations
TOTAL	6

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.

Budget gimmicks

The nonprofit organization State Budget Solutions released a report in January 2014 detailing what it calls budget gimmicks used by the states. The report is meant to highlight situations where states hide spending or misuse funds for purposes different from which they were initially intended. According to the report, South Carolina received funding as part of the National Mortgage Settlement in February 2012. The funds were supposed to be used to provide some restitution to homeowners who lost equity in the market collapse or lost their homes during foreclosure scandals. South Carolina was one of six states which did not direct any of the funds toward the agreed-upon uses.

Prior fiscal year budgets

Fiscal year 2016

See budget bill: H 3701

Governor Nikki Haley announced her fiscal year 2016 budget proposal on January 12, 2015. This proposal recommended $6.881 billion in general fund spending, which was designed to fully fund state reserves. The budget also emphasized education improvements, social service reforms, and law enforcement and prosecution improvements.

Governor Haley signed the official state budget into law after making 87 vetoes. The final budget totaled approximately $7 billion and made investments in many of the areas recommended in the governor's proposal.

Fiscal year 2015

See budget bill: H 4701

Governor Nikki Haley announced her fiscal year 2015 budget proposal on January 13, 2014. Under the governor's proposal, total spending for fiscal year 2015 would have equaled approximately $23.5 billion, including $6.6 billion in general fund spending.

On June 11, 2014, Haley signed into law the fiscal year 2015 budget. The enacted budget totaled $24 billion, a 6.7 percent increase over fiscal year 2014.

Fiscal year 2014

South Carolina state budget -- 2014
South Carolina State Legislature
Text:	A101, R120, H3710
Legislative history
Introduced:	March 5, 2013
House:	March 13, 2013
Vote (lower house):	116-1
Senate:	May 28, 2013
Vote (upper house):	34-7
Conference:	June 19, 2013
Conference vote (upper house):	39-5
Conference vote (lower house):	54-52
Governor:	Nikki Haley
Signed:	June 25, 2013

The fiscal year 2014 budget was signed into law by Governor Nikki Haley on June 25, 2013. The $22.8 billion spending plan included a $6.7 billion General Fund, $7.6 billion in federal funds and $8.4 billion in other funds (e.g., grants, agency fees, fines, etc.). While the budget easily cleared the state Senate, it passed by only a two-vote margin in the House.

Budget opponents disapproved of the inclusion of tax credits for private school tuition, a lack of expanded Medicaid eligibility, and a failure to institute a cost-of-living wage increase for state employees. Supporters of the budget pointed to allocations for infrastructure improvement and expanded full-day pre-school programs.

Fiscal year 2013

See also: South Carolina state budget (2012-2013)

Fiscal year 2012

See also: South Carolina state budget (2011-2012)

Fiscal year 2011

See also: South Carolina state budget (2010-2011)

Fiscal year 2010

See also: South Carolina state budget (2009-2010)

See also

• South Carolina state budget and finances