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The Pay Raise Veto

I was really surprised that the SC House actually over-rode Gov. Haley’s veto of the $12,000/year legislative pay raise. Note that it took two votes to do it. We sustained the veto on the first vote, then a few members changed their minds and it was re-voted.

The 54% increase in legislative compensation has two effects.

First, it gives legislators an additional $1,000 per month to cover in-district expenses. This money is reportable as taxable income.

Second, it is included in the formula that determines legislators future retirement benefits. The formula is based on years of service and compensation.

So, the more seniority a legislator has the greater the increase in his retirement benefit.

Think about it. This pay raise really sweetens the ability to get re-elected. It keeps on paying all through retirement.

The SC Senate will take up the veto today. They should sustain it, but since it was their idea in the first place, I doubt that they will.

Note that the Senate did sustain the veto and the pay raise was defeated.