COLUMBUS, OH (WLIO) – Ohio lawmakers have just over two weeks to finalize the state’s new two-year budget, and several key differences still need to be resolved.
The Ohio Senate passed its version of the budget on Wednesday, mostly along party lines. Senators are pushing to flatten Ohio’s income tax rate with the new budget bill.
Under the proposal, Ohioans making between $26,051 and $100,000 would pay an income tax rate of 2.75%, while those making over $100,000 would pay 3.5%. People making less than $26,050 would not be taxed. Democrats say the loss of funding could hurt services supported by the state.
The Senate plan also proposes changes to property taxes, targeting school districts that have carryover balances of 50% of their yearly budgets. It also expands the homestead exemption for seniors and people with disabilities.
A major difference between the Ohio Senate’s budget and the plans put forward by the Ohio House and Governor Mike DeWine is how to fund a new Cleveland Browns stadium. The Senate’s proposal would take $600 million from Ohio’s unclaimed funds account, which currently holds around $1.7 billion in abandoned funds. The House proposed issuing $600 million in bonds to be repaid over time, while the governor suggested doubling the tax, from 20% to 40%, on companies offering sports betting in the state.
A joint conference committee made up of House and Senate members will now work out the final details of the two-year budget, which must be presented to Governor DeWine for approval by June 30th.
