COLUMBUS, Ohio —The state’s operating budget now heads to the desk of Governor Mike DeWine after passing the General Assembly. The budget plan, which has drawn criticism from Democrats for prioritizing tax cuts for the wealthy while making significant cuts to Medicaid and introducing controversial policy provisions, awaits the governor’s signature.
The Senate’s budget plan, spearheaded by Republicans, included an additional $600 million in tax relief on top of the initial $2.5 billion rollout, aiming to benefit Ohio taxpayers and small businesses. Senate President Matt Huffman (R-Lima) emphasized the plan’s goal of returning $3.1 billion to families and small businesses, stating, “We should always remember that moms and dads go to work to feed their family, and their priority should never be to feed the government.”
A key aspect of the Senate’s budget is the implementation of a fair and simplified flat tax approach, reducing the number of tax brackets to only two over the biennium. The marginal rates are set at 2.75% for income over $26,050 and 3.5% for income over $92,150, with individuals earning $26,050 or less paying no income taxes. Furthermore, taxpayers will benefit from an extended two-week sales tax holiday.
In addition to tax relief for individuals, the Senate’s budget plan includes significant tax reforms for businesses, particularly in relation to the Commercial Activity Tax. Starting from tax year 2024, businesses will not be taxed on the first $3 million of gross receipts, and in tax year 2025, they will not be taxed on the first $6 million.
While Republicans highlight the positive impacts of their budget plan, Democrats express concerns about its priorities and implications for Ohioans. State Senator Antonio (D-Cleveland) criticized the budget for favoring the wealthy and neglecting those facing economic challenges. She voiced disappointment over missed opportunities for bipartisan collaboration and stated, “This budget puts Ohio on a path that will leave behind those who are struggling the most to get ahead.”
Democrats also raise objections to various controversial policy provisions embedded within the budget. Senate Bill 1 proposes transferring significant powers from the elected state Board of Education to a new executive agency, while Senate Bill 117 seeks to establish centers for what critics describe as “conservative indoctrination” at five state universities.
House Bill 33, the state operating budget, will now proceed to Governor DeWine for his signature. However, Democrats hope that the governor will exercise his authority to veto certain provisions of the budget. The final budget must be balanced and signed into law by June 30th to meet the deadline.
Critics argue that the current budget proposal reflects a partisan approach that fails to address the needs of all Ohioans and raises concerns about the long-term consequences of prioritizing tax cuts and controversial policy changes.