(COLUMBIA, S.C.) -- An extra $1.4 billion in state spending could be delayed because legislators are gridlocked on a proposed $64 million tax cut, The State reports.
House lawmakers proposed a "continuing resolution" that would keep the state running at its current budget, which means South Carolina could not use any of the $1.4 billion in new funds this year. The money otherwise would go toward teacher and state worker pay raises, special education programs and Medicaid expansion.
The House and Senate are at odds over a tax cut for small businesses. House lawmakers are fighting to reduce a small business tax from 5 percent to 3 percent, but a permanent law change that bypasses normal legislative vetting is required for the process, something senators do not want to do.
Even if lawmakers resolve the tax cut dispute, they still have several other issues to work out, including how to fund a multi-million dollar dredging project, the paper says.
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