Frank A. Rainwater

The meeting focused on the review of General Fund revenues and the consideration of updates to the fiscal year 2025-26 and 2026-27 forecasts. Key discussion topics included the impact of tax filings on revenue projections, revisions to South Carolina employment growth data, ongoing economic concerns such as geopolitical tensions and oil prices, and specific performance metrics for Sales tax, Individual Income tax, Corporate Income tax, and other revenue sources. The board also reviewed adjustments to forecasts for the Education Improvement Act and Homestead Exemption Act funds, as well as the recognition of lottery-funded scholarship excess revenue.

The Board meeting included a comprehensive review of General Fund revenue and economic updates for the 2025-26 fiscal year, noting revenue distortions caused by tax return processing timing. Key economic indicators were discussed, including employment growth, personal income trends, inflation data, and rising oil and gasoline prices and their potential impact on household spending and the broader economy. Corporate and individual income tax trends were analyzed, highlighting significant variances from expectations and the impact of delayed refund processing. Additionally, the board reviewed the potential revenue impacts of legislative proposals, including income tax reform, federal income tax conformity, and an increase in the homestead exemption. The board concluded by reviewing forecasts for the 2025-26 and 2026-27 fiscal years and recommended no immediate changes to existing projections.

The board meeting included updates from the Mapping and Operations Division, covering the County Boundary Program, the Beach Erosion Research and Monitoring project, the Real Time Network for geospatial positioning, the Geographic Information Council, the Statewide Aerial Imagery Program, and preparations for upcoming US Census Bureau data collections. Additionally, the board received an analysis of employer contribution trends regarding state employee salary-based and non-salary-based costs, including retirement contributions and health insurance premiums.

The board meeting primarily focused on the recognition of staff through employee service awards, acknowledging employees for 5, 10, 20, and 30 years of dedicated service across various departments including Mapping and Operations, Compliance and Technology, Data Integration and Analysis, and Fiscal Analysis. The meeting also included a segment for other items for discussion.

The board reviewed revenue forecasts for FY 2025-26 and FY 2026-27, noting that revenue collections were slightly below expectations for the month of January. The discussion highlighted a disconnect between economic activity and revenue collections, with specific concerns regarding weaker than anticipated holiday sales affecting sales tax and corporate income tax. Staff reported on personal income and employment data for South Carolina, and the board ultimately decided to maintain existing revenue estimates without changes, with plans to revisit forecasts following the tax filing season.