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by WILL FOLKS
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Sources familiar with the contentious budget battle between South Carolina’s House of Representatives and its Senate – two bodies ostensibly ruled by “Republican” supermajorities – say a tentative agreement has been reached between the warring chambers.
South Carolina’s 2026-2027 fiscal year started two weeks ago, on July 1, 2026 – but because these rival GOP factions couldn’t agree on a spending plan, the state has been funded by a continuing resolution that preserves appropriations at the previous year’s levels.
My media outlet has repeatedly argued (here and here) that this is a good thing… that it creates a rare opportunity to slow the growth of the Palmetto State’s results-challenged state government and put more money back into the bank accounts of individual income earners and small businesses.
Accordingly, FITSNews has urged state senators to hold the line and reject the budget proposal the increasingly left-leaning House tried to saddle them with. Doing so could preserve as much as $4 billion for transformative tax relief in 2027 – something I have argued would go a long way in reversing the Palmetto State’s historic anemia with regard to income levels.
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“The longer senators reject the version of the budget that passed the increasingly left-leaning S.C. House of Representatives, the more likely South Carolinians are to have a shot at transformative tax relief in 2027,” I noted earlier this month.
A specially appointed panel of six lawmakers returns to Columbia, S.C. tomorrow (Tuesday, July 14, 2026) at 11:00 a.m. EDT for a continuation of closed-door negotiations on the budget – with several sources familiar with the process indicating a deal could be announced by close of business Tuesday.
Participating in negotiations on behalf of the Senate are finance chairman Harvey Peeler, banking chairman Tom Davis and minority leader Brad Hutto. Representing the House are ways and means chairman Bruce Bannister, outgoing majority leader Davey Hiott and state representative Jackie Hayes.
Sources familiar with panel’s negotiations tell FITSNews both sides have agreed to cut all of the pork barrel earmarks included in the proposed $42.6 billion spending plan – which could free up as much as $500 million for tax relief. We’re also told the panel has agreed not to appropriate an estimated $150 million hidden in the budget as the latest corporate welfare handout for crony capitalist Scout Motors.
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Details of the compromise haven’t been completely ironed out at this point, but sources familiar with the proposal indicated the state could be looking at anywhere from $500 million to $650 million in freshly un-obligated revenue.
Such a total would be music to the ears of newly minted Republican gubernatorial nominee Alan Wilson – who made tax cuts and expanded affordability centerpieces of his successful campaign for the GOP gubernatorial nomination last month.
“Alan would be set up nicely under this agreement,” a lawmaker familiar with the proposed compromise told FITSNews.
Wilson is widely expected to defeat Democrat gubernatorial nominee Jermaine Johnson in this fall’s general election and take office on January 13, 2027. No Democrat has won a statewide election since 2006 – and no Democrat has won a race for the governor’s mansion since 1998.
While South Carolina governors are limited by the state’s constitution in what they can accomplish, Wilson has made it abundantly he clear he intends to leverage the power of the bully pulpit – one steeled by his monolithic GOP runoff victory – to advance his tax cut/affordability agenda.
Keep it tuned to FITSNews as we plan on attending the budget negotiations at the S.C. State House this week and reporting back on what we learn…
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ABOUT THE AUTHOR…
Will Folks is the founding editor of the news outlet you are currently reading. Prior to founding FITSNews, he served as press secretary to the governor of South Carolina. He lives in the Midlands region of the state with his wife and eight children.
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