After six months, the Ohio General Assembly finally finished up the state’s next two-year operating budget this week.
Now the 6,000-page document heads to the desk of Gov. Mike DeWine, who can cancel certain provisions he doesn’t like via line-item vetoes.
I’ll get you up to speed on the legislature’s work. As always, I’m more than happy to take questions, tips, or concerns. I can be reached at Avery.Kreemer@coxinc.com or on X at @AveryKreemer.
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Ohio budget cuts top income tax rate, gives $600M to Browns, aims for property tax relief
• The story: The Ohio House and Senate came to an agreement Wednesday on an operating budget that sets out how $60 billion in state funds will be spent over the next two years.
• The highlights: It’s a near Sisyphean task to condense a 6,000-page bill into something that’s easy to read, but I sure tried. Here are three some bigger provisions:
Ohio will move to a flat 2.75% income tax. The budget eliminates the state’s highest tax bracket for filers making more than $100,000 a year, and thereby throws about $1.6 million in state income tax revenue in doubt over the next two years.
Ohio’s public schools will have to be more cautious with how much money they hold on to. If they hold on to anything above 40% of their last year’s operating expenses, the excess will get skimmed off the top and sent back to property taxpayers.
The Cleveland Browns will get $600 million in state support to build a new stadium in the suburbs. The money will come from a huge pot of unclaimed funds (read: potentially your money) that the state maintains.
• Republicans’ view: House Finance Chair Brian Stewart framed this budget as one that will bring substantial tax relief to Ohioans — income taxes were lowered and various property tax relief ideas, such as the school district carryover cap, were included.
• Democrats’ view: Democrats, meanwhile, asserted that the budget’s tax relief is focused toward wealthier Ohioans. “This budget is making the wrong choices for who we are trying to serve,” newly-elected House Minority Leader Dani Isaacsohn told reporters.
Ohio lawmakers grant local commissions power to lower property tax rates
• The story: County budget commissions throughout Ohio will soon be emboldened, lawmakers hope, to unilaterally lower certain property tax rates as the state seeks solutions to a widespread property tax burden.
• The language: The budget will explicitly allow county budget commissions to reduce the millage of any voter-approved, non-debt tax levy “if the commission finds it reasonably necessary or prudent to avoid unnecessary, excessive, or unneeded property tax collections.”
• What’s a budget commission?: County budget commissions under state law are a minimum three-member board in all Ohio counties consisting of that county’s auditor, treasurer and prosecuting attorney, though some counties have an expanded board.
• Intent: Senate President Rob McColley, R-Napoleon, explained that this authority is meant to come into play when a property tax levy generates more money than intended or needed.
• Quote: “There are some circumstances where, when a levy was passed, it may not have been conceived that the money it would generate would be as much as it eventually does generate,” McColley said. “In some cases, we see that result in rising carryover balances for school districts or other local government entities that are well beyond what they ever anticipated getting.”
• Yes, but: Democrats, meanwhile, raised concerns about how it would work with school districts, many of which cross county lines. Rep. Allison Russo asked reporters, “Are you overruling the will of voters within that particular school district by people that they don’t even get to elect?”
• Licensed to drive: Thousands of Ohio drivers can legally get back on the roads following the recent implementation of an Ohio law that reverses license forfeitures for failure to pay court fines or fees. Here’s my story.
• Annex debate: Passions in Yellow Springs have been reignited over a proposal to annex several dozen acres of land on the west side of the village that would eventually become new housing. Here’s London Bishop.
• Tims joins leadership: The Ohio House Democratic caucus’ new leadership team, confirmed this week, will have Dayton Democrat and freshman Rep. Desiree Tims as assistant whip. Here’s my story.
State political news of the week
• Into the sunset?: A state tax credit that has awarded a value of $52 million to rehabilitate historic buildings in Dayton alone will be “sunset” in 2027, but lawmakers behind the idea say they’re not trying to kill the program. Here’s the story from Cornelius Frolik and me.
• Backward step?: Passenger rail advocates across the Dayton region and state say the new budget is a step in the wrong direction for efforts to improve and expand passenger rail service in the state. Here’s another one from Cornelius and me.
• Status quo: Ohio lawmakers dropped a plan late in the budget process to make it harder for school boards to put property tax levies on the ballot, an idea pushed by the Senate in an attempt to limit Ohioans’ property tax burdens. Here’s my story.
National political news of the week
• Iran strike: Multiple Ohio leaders are reacting across social media to President Donald Trump’s announcement of striking three nuclear sites in Iran, including with questions of constitutionality from Republican U.S. Rep. Warren Davidson of Troy. Here’s our staff report.
• Local deportation: A Honduran immigrant and Dayton father who was detained by U.S. Immigration and Customs Enforcement after going to a routine check-in will be deported from the United States.Here’s Sydney Dawes and Denise Callahan.
• Fed cuts: Federally funded programs that investigate abuse, ensure voting access and provide education and job support for people with developmental disabilities in Ohio are the target of U.S. Department of Health and Human Services budget cuts.Here’s Sydney Dawes.
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