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SC Gov. McMaster recommends how state should spend American Rescue Plan funds

McMaster's budget includes plans for spending over $2.4 billion in American Rescue Plan funding and education reform.

COLUMBIA, S.C. — South Carolina Gov. Henry McMaster laid out his plans for how the state will spend more than $5 billion as part of the 2022-23 budget. 

McMaster's budget outline has five key proposals, including education reform and addressing labor shortages. The state will also spend $120 million on education reform for K-12 schools, $20 million to address the nursing shortage, $100 million for a new COVID-19 testing lab and $12 million for school bus drivers. Eligible drivers would get three payments worth up to $2,000 total.  

South Carolina will receive over $2 billion from the American Rescue Plan Act. McMaster's office said the new budget will look to cut income taxes and double the state's rainy day fund. 

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"The $2.4 billion in ARPA funds along with the almost $3 billion in surplus revenue generated by South Carolina’s booming economy - presents us with a once-in-a-lifetime opportunity.  An opportunity that we cannot afford to squander," McMaster wrote in a letter to the General Assembly. "If we take advantage of this once in a lifetime opportunity – by making big, bold, and transformative investments in the areas of education, infrastructure, workforce, and economic development, South Carolina will prosper for generations to come."

The proposal includes $177 million for income tax cuts. 

"This year marks the fourth year Gov. McMaster's executive budget includes a proposed 1% rate reduction over five years for all personal income tax brackets, starting with an immediate $177 million cut, paid for and certified in the 2022-23 executive budget," McMaster's office said. 

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