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Reineke Supports Historic Tax Cuts, Education Reform in Family-Oriented State Operating Budget

June 30, 2023
Bill Reineke News

COLUMBUS— Building on the strong foundation of the Senate’s tax relief package, the Senate and House worked to expand it even more in the final version of House Bill 33, the state’s new two-year $86.1 billion operating budget, containing sweeping investments in career tech education, accountability for Ohio's education system, historic tax policy reform, increased child care availability, and funds for mental health support.

"The focus of this budget has concentrated on helping our Ohio families live better lives. This money belongs to Ohio taxpayers, and any chance we have to put it back in their pockets is something I think is worth doing," said State Senator Bill Reineke(R-Tiffin).

The budget maintained the tax relief package totaling $3 billion while also reducing the overall number of income tax brackets to only two. 

The marginal income tax rates will be 2.75% over $26,050 and 3.5% over $100.000.

The budget also recognizes the vital role small businesses play in Ohio’s economy.

The Senate’s budget invests significant tax relief to businesses with significant reforms to the Commercial Activity Tax.  Businesses will pay no taxes on the first $3 million of gross receipts in the first year of the budget and no taxes on the first $6 million of gross receipts in the second year of the budget.

Historic Education Reform

The state budget also includes Senate Bill 1, a historic overhaul and realignment of the responsibilities and duties of the Ohio Department of Education (ODE) and the State School Board.

"I introduced Senate Bill 1 based on discussions with my local school officials. Our K-12 system has been in drastic need of greater accountability to Ohio's students, parents and taxpayers and these shortcomings have been highlighted by not only student performance but calls from the community for greater transparency," said Reineke who was the primary sponsor of Senate Bill 1. "These reforms ensure that Ohio's education system will be accountable and responsive to Ohio's elected officials, parents, and students."

The changes would create a cabinet-level agency named the Department of Education and Workforce (DEW). The bill also creates the Division of Primary and Secondary Education and the Division of Career Technical Education within the Department, which will focus on career education and preparing students for the workforce. 

Workforce and Career Tech Investments

 Also included are significant investments in training the workforce of the future. Chief among these is the ability for school districts to form a career technical education cooperative district as a model under which school districts may provide career education to students.

"The traditional college path is common in our schools and appropriate for many students after graduating high school, but many young people are not aware of the options available to them should they choose another path in career-oriented education," Reineke said. "Our students deserve to know how many career paths are available to them and be guided into whichever area they feel called to as their student purpose."

The budget now moves to Governor Mike DeWine for signature.