Ohio Senate Passes Bold New Budget Plan

COLUMBUS – Today, the Ohio Senate passed a new biennial budget plan as the state forges ahead into the post pandemic economy. Paving the way is a reformed school funding plan that provides a reliable, sustainable and stable foundation formula for Ohio’s 609 public school districts to build their budgets.
"The Senate’s budget plan represents a bold step forward for a state emerging from a pandemic. We recognized the need for a well-educated workforce by investing in a new school funding plan that is reliable, sustainable and accountable to taxpayers," said Senate President Matt Huffman (R-Lima)."Additionally, the Senate delivered on its commitment to provide tax cuts. We fundamentally believe it is your money first, not the government’s." The Senate’s balanced budget brings additional relief to taxpayers through an across-the-board 5% income tax cut. This keeps $874 million in the pockets of the hard working families who earned it. Ohioans who earn less than $22,150 will continue to pay zero income tax. This plan preserves the Senate’s commitment to tax reform from the last several General Assemblies, which reduced the overall number of tax brackets from nine to five.
"Our priority is the prudent stewardship of the money that hard-working Ohioans send to the state," said Senate Finance Chairman Matt Dolan (R-Chagrin Falls). "We have delivered a balanced, fiscally responsible budget that invests in essential services, like education and healthcare, and still returns money to the people of Ohio."

Among other highlights in the Senate's budget, the proposal:

• Supports Our Veterans: The proposal maintains a critical treatment program for veterans suffering from PTSD and expands the program to help treat first responders and law enforcement. It provides an additional $740,000 for 13 veterans groups across Ohio and appropriates $200K to provide temporary housing for homeless female veterans.

“The freedoms we have in this country wouldn’t be possible without our veterans. This budget will improve the lives of those who fought for this great nation, and that is what matters most." – State Senator Frank Hoagland (R-Mingo Junction)

• Caring for Ohio's Children: The Senate budget focuses on improving access and making child care more affordable. The bill includes an additional $50 million in FY22 to reduce child care co-pays for Ohio families, and increases the eligibility for families. The Senate's plan also helps support Ohio's most vulnerable children by providing an additional $20 million over the biennium for children's services.

“The Senate has increased access to child care to help parents return to work in a post-pandemic era. The bill also reaffirms our commitment to children in vulnerable situations so they have the support they need." – State Senator Jay Hottinger (R-Newark)

• Invests in the Health and Well-being of Ohioans: Makes targeted investments in the health of women and children, including the expansion of Medicaid coverage for new mothers from 60 days to one year. The Senate's budget also increases funding for rape crisis centers and domestic violence programs across the state.

"This budget prioritizes our state's children and new mothers, as well as provides for programs that support at-risk Ohioans who need it most." – State Senator Stephanie Kunze (R-Hilliard)

• Strengthens Laws to Prevent Fraud: The Senate's budget provides additional funding, directed to county JFS departments, for fraud prevention efforts, including early fraud detection measures and public assistance fraud investigations.

“Our welfare system must focus on security in order to ensure help is available to those who truly need it. This effort holds fraudsters accountable, and incentivizes Ohioans getting back to work." – State Senator Rob McColley (R-Napoleon)

• Protects Ohio's Water Quality: Restores $20 million for Ohio’s H2Ohio program.

"The Senate's budget reflects our ongoing commitment to protecting Ohio's natural resources, and providing for programs that support what's good for the people—our environment and our economy." – State Senator Theresa Gavarone (R-Bowling Green) The two-year operating budget accounts for $74.5 billion of general revenue tax dollars. The bill now returns to the Ohio House of Representatives, where it is expected to be referred to a conference committee where the House and Senate versions will be reconciled. The Ohio Constitution requires a balanced budget be signed by the governor by June 30.