Reynolds Praises Record Tax Cuts and Record Education Funding in State's New Two-Year Budget

June 30, 2023

COLUMBUS—Senator Michele Reynolds (R-Canal Winchester) is praising the final version of the state's $86.1 billion operating budget (HB33) passed today by the Ohio General Assembly. It provides record tax cuts for Ohio families and businesses, record spending on public education, and expands school options for Ohio families.

"This budget is proof that we are committed to improving the quality of life for hard-working Ohioans in the 3rd Senate District and across the state," said Reynolds. "It's remarkable we were able to combine record tax cuts with a record increase in spending for public K-12 schools. This is a powerhouse package that will promote increased prosperity and opportunities for everyone in our district and in our state."

Reynolds worked hard to secure $2 million for the Somali Community Link’s Social Service Program to support resources for social services, housing, and workforce development needs in the Somali and Immigrant Community and $500K for the New African Immigrant Commission to support the Sub-Saharan African population in the State of Ohio

“We are very grateful for the leadership and support of Senator Michele Reynolds in helping to secure these vital funds," said Mahdi Taakilo, Chief Executive Officer of Somali Community Link Social Services. "These dollars will provide the much-needed resources for these organizations that support Ohio’s immigrant communities.”

Reynolds also championed these provisions in the budget:

$300,000 for African-American Male Wellness Agency to support the Calling All Dads Initiative in Senate District 3.
$350,000 for Neighbors Helping Neighbors to support food security in Senate District
$400,000 for My Project USA to support the immigrant and refugee community in Senate District 3.
$125,000 for HEART Food Pantry to support food security in Senate District 3.
Medicaid reimbursement of remote ultrasounds and fetal nonstress tests.
Senate Bill 79: Dropout Prevention and Recovery Bill.
Senate Bill 93: Doula Medicaid Reimbursement Bill.
A ten-year extension of the Nurse Education Grant Program through December 31, 2033, which provides grants to nurse education programs that partner with other education programs, hospitals and other health care facilities, community health agencies, and patient centered medical homes.
Remote meetings for County Developmental Disabilities boards that allow board members to attend meetings via electronic communication.

Reynolds was gratified the budget included so many other outstanding provisions.

Historic Funding Increase for K-12 Education

The budget includes includes historic funding and policy reforms focused on accountability and more options for parents.

The budget adds an additional $1.97 billion funding for public schools. That’s a 12.9% increase over the biennium. Total Foundation funding for students in public schools is a record $9.6 billion in fiscal year 2024 and $9.9 billion in fiscal year 2025, totaling nearly $2 billion more for public schools.

Parents’ Education Choices Matter

The budget makes Ed Choice Scholarships funded by the state universally available to every Ohio student based on a sliding scale of income eligibility..

Families earning 450% of the federal poverty level ($135,000 for a family of four) will qualify for a full scholarship funded by the state. That is $6,165 for K-8 students and $8,407 for high school students. Scholarships for students in families within incomes above 450% will be means-tested with scholarship amounts adjusted based on their income. Every student in Ohio will be eligible for a scholarship worth at least 10% of the maximum scholarship regardless of income.

Department of Education Accountability

The budget includes historic reforms to the Department of Education and to the duties of the State School Board. The plan restructures the Department of Education into the Department of Education and Workforce, which will fall under the authority of the Executive Branch of government. This structural change provides significant and much needed accountability over the department regarding education policy development and implementation that will greatly improve its operations.

Income and Business Tax Cuts

The budget provides a record $3 billion in tax relief. This move Ohio toward a fair and simplified flat tax approach, as the budget reduces the number of tax brackets to only two over the next two fiscal years. The marginal rates will be 2.75% over $26,050 and 3.5% over $100,000. Ohioans making $26,051 or less pay no income taxes. Eight years ago there were nine tax brackets in Ohio.

Another historic change means almost 90% of Ohio’s businesses will no longer have to pay any Commercial Activity Tax (CAT). The budget provides significant tax relief by not requiring businesses to pay taxes on the first $3 million of gross receipts in the first year of the budget, and pay no taxes on the first $6 million of gross receipts in the next year.

The budget also includes an extended sales tax holiday in August that will run two weeks, providing a boon for Ohio families.

Economic Development

The budget provides a billion dollars for Governor DeWine’s economic development plan that will prepare sites to attract new business expansion, and build upon the success of attracting the Intel chipmaking plant to Ohio.

This one-time billion-dollar Strategic Community Investment Fund will gives legislators, local officials, community leaders, and others, a year to plan, craft proposals, and request funding for significant projects with great potential. Qualifying projects could include both transportation and community plans.

The budget now goes to Governor Mike DeWine to be signed into law.