S.C. workers are making more money, but their bosses are making less -- a sign that the state’s slow recovery from the Great Recession could be slipping.
Individual income tax collections last budget year were $116 million more than expected, meaning S.C. workers were taking home more taxable income. But corporate income taxes brought in $16 million less than anticipated -- a sign, state economists say, of hard times ahead.
The news comes after several months of positive growth that had led many to think South Carolina was beginning to recover from the recession. But Monday, the Federal Reserve Bank of Philadelphia listed South Carolina as one of 13 states that “likely fell into recessionary territory in July,” citing the state’s unemployment rate, which increased to 10.9 percent.
The good news is South Carolina has a conservative revenue estimate in place for its current 2011-12 budget year, according to Chad Walldorf, chairman of the state Board of Economic Advisors. That revenue estimate is used to set the state’s budget.
Despite the higher-than-expected state revenues, the board today did not adjust upward its estimate of the state’s revenues for this year. If it does, it would be likely to do so in November, giving Gov. Nikki Haley time to amend her executive budget proposal for next year.