Flat Tax, Stadium Funding included in Ohio’s new two-year budget

COLUMBUS, Ohio (WLIO) – Ohio’s $60 billion budget has passed both chambers of the General Assembly without a single Democratic vote and is now headed to Governor Mike DeWine’s desk for final approval.

Republicans in the Ohio House and Senate approved the two-year budget, which is set to take effect July 1. Among the key components is a flat income tax structure for Ohio residents.

Those making between $26,050 and $100,000 will continue to pay 2.75% income tax. Those making over $100,000 will see a drop from 3.5% to 3.125% in the first year of the budget and go to the 2.75% in the second year. Ohioans making less than $26,050 will pay zero income tax.

The budget includes changes impacting school district finances. School Districts will be allowed to carry over 40% of their annual budget, and will be able to have an allowance for capital projects. Anything over that 40% carryover will have to be returned to the taxpayers.

According to Senate President Rob McColley, the budget has nearly $1 billion additional for public schools, with 77% of Ohio school districts seeing an increase in the first year of the budget, over what they got this financial year and 75% will see an increase the second year.

However, the budget also cuts millions of dollars in funding to the H2Ohio initiative, a program designed to curb harmful algal blooms in lakes such as Grand Lake and Lake Erie. It also reduces funding for a state program aimed at lowering infant mortality.

One of the most debated items was how to address a $600 million funding request for a new domed stadium for the Cleveland Browns in Brook Park. 

The plan that was approved was to take $1.7 billion from Ohio’s Unclaimed Fund Program, with $600 million going to the Haslam Sports Group, the rest will be placed in a fund for future stadium projects in the state.

Governor DeWine has the authority to issue line-item vetoes on the budget and must do so by June 30 in order to sign the bill into law.