The Ohio Senate introduced its version of the state’s new two-year $85.7 billion budget bill highlighting significant reforms for education policy, tax policy, and homeownership programs.
The budget includes income tax cuts, universal school vouchers, and a plan to remove the majority of the power of the state Board of Education and superintendent.
According to Senate President Matt Huffman (R-Lima), it’s time to make bold changes to the state budget.
“Challenging the status quo is difficult. Now is the time to make the bold changes necessary to focus on the results our taxpayers should demand, the results our parents should expect for their children’s education, and the results our state desperately needs to revitalize crumbling neighborhoods in our city centers,” Huffman (pictured above) said.
In the Senate’s proposed budget, two new tax brackets will result in personal income tax reductions for many Ohioans. The marginal rates will be 2.75 percent for annual income over $26,050 and 3.5 percent for annual income over $92,150, phased in throughout the course of the biennium. Ohio residents will not pay any income taxes if their annual income is less than $26,051.
According to Senate Finance Chair Matt Dolan (R-Chagrin Falls), this reform rewards the workforce.
“Higher income taxes penalize the work ethic and success stories of hard-working Ohioans that drive our economy,” Dolan said.
A two-week extended sales tax break is another provision of the state senate’s economic plan.
Additionally, state senate legislators want to broaden the state’s school voucher program so that all K–12 students in Ohio are eligible to obtain vouchers for private education. Currently, the only pupils who qualify are those who attend schools with low test scores and whose families are at or below 250 percent of the federal poverty level.
Senate legislators upped eligibility for private school vouchers through the state’s EdChoice scholarship program, expanding eligibility to those at up to 450 percent of the federal poverty level or $135,000 for a family of four.
The state senate school funding plan maintains the updated 2022 salary/spending data used in the methodology for determining the base cost. Foundation funding for students in public schools under the Senate plan is $9.3 billion in fiscal year 24 and almost $9.6 billion in fiscal year 25. $1.3 billion more than fiscal year 23.
Dolan said that the state senate plan provides more state aid to public schools than at any other time in state history.
“We increase the minimum state share from 5 percent to 10 percent to ensure that all districts are getting adequate state support,” Dolan said.
The state senate’s draft plan restores funding for literacy improvement that was in the budget Governor Mike DeWine proposed earlier this year.
The state senate budget proposal includes a provision supported by DeWine to remove the majority of the power of the state Board of Education and superintendent, reinstate students having to repeat a grade under the Third Grade Reading Guarantee, provides $200 million for career technical education, $100 million for facility upgrades and $100 million for equipment, increases funding for the states psychiatric hospitals by $15 million each fiscal year, creates the “Welcome Home Ohio” program to preserve, protect and encourage home ownership investing $150 million across three categories through the Ohio Department of Development, and adds $15 million to fund the upcoming August 8th statewide special election.
The Buckeye Institute applauded many aspects of the Senate’s budget proposal.
“The Senate’s bold plan will effectively make vouchers universal and improve funding for charter schools. If passed, this policy will help every child in every family in every community of Ohio. Additionally, the Senate wisely resisted the House proposal to eliminate the third-grade reading guarantee, which will ensure students have the reading skills they need as they advance to higher grades,” research fellow Greg Lawson said.
The organization also said that “there is much to celebrate in the Ohio Senate’s tax package.”
State senators will spend the next several weeks working with this draft budget. A vote from the full state senate is expected near the middle of June. A budget approved by both chambers must be reconciled before being sent to DeWine for approval before the fiscal year’s end on June 30th.
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Hannah Poling is a lead reporter at The Ohio Star and The Star News Network. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected]
Background Photo “Ohio State Senate Chambers” by Antony-22. CC BY-SA 2.0.
