- Protecting Taxpayers,
- Reducing Regulatory Red Tape
- Record New Investments in Childhood Programs
Ohio Senate President Larry Obhof (R-Medina) has announced the passage of Am. Sub. House Bill 166, the state’s two-year operating budget.
The Senate voted 29-1 in favor of the conference committee report approved on Tuesday.
The bill now awaits Governor DeWine’s signature.
“This budget was passed with strong bipartisan support, as both Republicans and Democrats recognized the need for new investment in key childhood and neighborhood programs. We did this while never forgetting our commitment to the taxpayers, and that we believe it’s your money first, not the government’s money,” said Senate President Obhof.
“Ohioans earn their money to take care of their families, not to take care of big government.”
The budget includes income tax cuts of nearly $700 million, providing significant tax relief and support to working Ohioans and job creators with the purpose of keeping the state’s economy healthy and growing.
Key elements of the tax reform plan include:
Eliminating the bottom two-tax brackets to help Ohio’s lower income families.
Implementing a 4% across the board income tax cut for the remaining five brackets. The Senate’s last two budgets have reduced the overall number of brackets from 9 to 5.
Protecting the backbone of Ohio’s economy by keeping the existing small business tax deduction framework of exempting the first $250,000 of revenue.
The new budget plan also builds on the framework of Senate Bill 1, implementing major regulatory reforms. Overly burdensome and unnecessary rules are a barrier to new economic investments and job growth in Ohio. Under House Bill 166, any new rule that is implemented, must come with an extensive review of two old rules that may be outdated or no longer relevant. This helps streamline Ohio’s code and provides consistency and reliability to Ohio’s regulatory framework.
Additional budget highlights include:
- Investing in Ohioans’ Health and Wellbeing: Makes targeted investments in kinship, multi-system youth, and crisis care, providing funding for families caring for children whose parents are struggling with addiction.
- Protecting the Health of Ohio’s Natural Resources: Continues to protect the health and viability of Ohio’s lakes and rivers by fully funding the H2Ohio program over the next two years in a comprehensive effort to deal with the challenges faced by Lake Erie and Ohio’s other vital waterways.
- Investing in Education and Career Readiness: Provides an additional $800 million in school funding for K-12 education, which equals $10.9 billion in FY20 and $11 billion in FY21. Increases funding for Ohio’s nationally-recognized libraries and programs that invest in early childhood programs.
- Supporting Our Veterans: Increases funding for various veterans’ organizations, including innovative programs focused on groundbreaking research for brain trauma and other mental health concerns.
- Providing for Vital Community Services: Funds directed to Ohio’s food banks, Boys and Girls Clubs, United Way family stability programs, Ohio Children’s Trust Fund, and the Lead Safe Cleveland Coalition.
“We have worked hard and diligently,” said State Senator and Finance Committee Chairman Matt Dolan (R-Chagrin Falls). “This budget preserves tax cuts for our families and job creators, supports children, an educated workforce and our natural resources. I am grateful for the steadfast leadership of President Obhof, my Senate colleagues, and our friends in the House who have remained committed to the process of producing a responsible, balanced budget for people of Ohio.”
Am. Sub. House Bill 166 will now be sent to the Governor for his signature. When signed, the new operating budget will become effective immediately.