Senator Reineke Applauds the Final Budget for Historic Investments Across Ohio
COLUMBUS— Senator Bill Reineke joined his colleagues in approving the state's new Biennium Operating Budget maintaining the Upper Chamber's commitment to fiscal responsibility to the taxpayers.
"This budget represents a historic investment in the great state and people of Ohio," said Senator Reineke. "We were able to balance the budget, complete the mission of substantial income tax relief, and invest in our great state."
Reducing Income Tax Burden with Fair Flat Tax
The last decade has seen a shift toward reducing the income tax burden on Ohioans. The Senate reached a milestone with the new Operating Budget by implementing the phase-in of a flat income tax.
The 2.75% flat rate will take effect in tax year '26, while tax year '25 will also see an immediate reduction of the highest bracket which will drop from 3.5% to 3.125%.
"The first thing moms and dads see on payday is the often disappointing amount of taxes taken out of their hard work," said President McColley. "I'm proud of the progress we have been able to make over the last decade by reducing the overall number of income tax brackets from nine down to two." Anyone making $26,050 or less will pay ZERO state income tax.
Additional $650 Million for K-12 Schools
The operating budget builds on the historic investments over the last two budgets that poured two billion dollars into public education.
The budget makes an additional $650 million investment into Ohio's K-12 public schools.
Every district will receive at least what it did in FY '21.
72% of districts will receive an increase or what they received in FY '25.
Districts that show significant improvement or that have received a 4-to-5 Star rating from the Department of Education and Workforce will also receive additional state aid.
House Bill 96 creates the OhioSee Program, which will receive $50 million over the biennium to provide students with more comprehensive eye exams and glasses. Students need to be able to see clearly to read, which will improve their success at school throughout the year.
HB 96 creates School Safety Training and School Bus Safety grant opportunities to be used for school and school bus safety programs.
The Operating Budget also includes an amendment which would prohibit student use of cell phones in public schools during school hours.
Some school districts have already banned cell phones, following the enactment of a law last year requiring local policies to be implemented that address the use of cell phones in schools. Staff members in those districts have seen positive results in student engagement, attendance, grades, socialization, and communication.
Investing in Housing
The budget increases the Senate's $100 million investment toward addressing a shortage of housing in Ohio.
The REDD program will invest $25 million for Residential Economic Development Districts, which will help plan for and provide homes for a rapidly growing workforce in Ohio's metropolitan areas that were selected for mega development sites.
$100 million will be directed into a revolving loan fund that will help prepare sites in rural Ohio for infrastructure and housing construction.
Often the geography and lack of site ready areas in rural Ohio makes larger scale housing plans unaffordable for developers compared to places located near larger cities.
Revitalizing Ohio
The Operating Budget increased the tax credit for investments in economically depressed communities from $25 million to $50 million, creating a pathway for the revitalization of struggling communities across Ohio.
"The increased tax credit for investment in opportunity zones will bring important projects to many areas of our state," said Senator Reineke," said Senator Reineke.
House Bill 96 transferred $200 million to the Brownfield Remediation Fund to be used for economic development and cleanup of contaminated land.
The Operating Budget enacted a permanent increase in the annual cap on the Historic Housing Rehabilitation tax credit to $75 million per fiscal year, allowing for increased preservation of Ohio's history and historic buildings.
Ohio continues to invest in and improve our 76 state parks and is the only state with free entry to all its state parks in the nation.