Schaffer Applauds Tax Cuts, School Funding in State Operating Budget

COLUMBUS - State Senator Tim Schaffer (R-Lancaster) announced the approval of House Bill 33, the state operating budget including funding key local projects in the 20th Senate District, $3 billion in tax cuts, increases in school funding, enhancing anti-fraud measures, improving public assistance benefits reforms.

“I want to thank President Matt Huffman and Senate Finance Chairman Matt Dolan for leading the way on a fiscally conservative budget,” Schaffer said. “Ohio is moving in the right direction and this budget is critical in providing tax cuts to Ohioans. We’ve made great strides in enhancing the state’s anti-fraud measures and implementing key public assistance benefits reforms that will help safeguard Ohio’s tax dollars while providing resources to those in need.”

 20th Senate District Project Funding

Included in the state operating budget was funding for several projects throughout the 20th Senate District including $20 million over the biennium for Licking County road improvements leading to the Intel project. 

Additionally, $4.5 million in funding was included for the Fairfield County Workforce Center to assist with workforce development program expansion and laboratory improvements.  An additional $4.5 million was included to provide critical funding to Fairfield Medical Center as well. These amounts represent several hundred thousand more in funding for Fairfield County over the early Ohio House version of the state operating budget.
 Tax Cuts
 
Over the past four General Assemblies, the Senate has reduced the overall number of income tax brackets from nine to four. Now, under House Bill 33, that number will be two. Phased in over the biennium, the marginal rates will be reduced to 2.75% between $26,050 and $100,000 3.5% over $100,000. Ohioans making less than $26,051 will pay zero income taxes.  

Additionally, there were also $700 million in commercial activity tax (CAT) cuts included in House Bill 33.  Businesses with gross receipts under $3 million per year in tax year 2024 and $6 million per year in tax year 2025 will not be required to pay for CAT. The bill also eliminates the $150 CAT fee for all businesses as well.

Included in the bill is a provision for an expanded sales tax holiday from August 1, 2024 – August 15, 2024, and allows for future sales tax holidays when the state has surplus revenue.

The budget bill included similar provisions to Senate Bill 39, which is the DeWine-Schaffer initiative that exempts sales tax for baby products such as diapers, car seats, cribs, and strollers. 

Historic Funding Increase for K-12 Education

HB 33 includes historic funding and K-12 education policy reforms focused on accountability and more options for parents. The budget adds an additional $1.97 billion to 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 FY24 and $9.9 billion in FY25 for nearly $2 billion more for public schools.

Anti-Fraud Measures

Additionally, language from Senator Schaffer’s Senate Bill 91 was included in the budget bill.  The language requires the Auditor of State to create training material for state employees detailing Ohio’s fraud-reporting system and requires that the Department of Administrative Services administer this training within 30 days of employment and every four years for existing state public employees and officials.

In addition, this legislation creates "mandatory reporters" in public offices such as elected officials, appointed officials, and those who have a fiduciary duty to a public office. A mandatory reporter is someone who is required by law to report a crime to the proper authorities immediately upon finding out a crime was or may have been committed. Mandatory reporters in the bill must report in a timely manner upon becoming aware of any theft in office, fraud, or misuse of public funds to the Auditor of State’s office or local law enforcement.

Public Assistance Benefits Reforms

 
Also included in the state operating budget are eight different provisions providing improvements in oversight and program efficiency in Medicaid and Supplemental Nutrition Assistance Program Electronic Benefit Transfer cards (SNAP EBT). 

Below is a brief summary of the reforms included in the state operating budget:

• Prohibits ODJFS from replacing an Electronic Benefit Transfer (EBT) card of a household that requests four or more within a twelve-month period unless certain circumstances have occurred
• Prohibits the amount of available funds on a SNAP electronic benefits transfer card from exceeding $2,000. Specifies that if a card is unused or contains a balance of $2,000 for a period of six months, ODJFS is required to deactivate the card with notice of intent of deactivation.
  Requires the Ohio Department of Medicaid (ODM) to implement a corrective action plan for each provider that is qualified to make Medicaid presumptive eligibility determinations, if their error rate of the determinations exceeds 7.5% in a month
• Requires the Ohio Department of Job and Family Services (ODJFS) to compile and deliver a quarterly report of various Supplemental Nutrition Assistance Program (SNAP) transactions to the General Assembly
• Requires individuals 16-59 to participate in Ohio's employment and training program as a condition of eligibility for SNAP benefits
• Prohibits a third-party vendor from conducting pre-screening activities for SNAP eligibility unless the vendor has entered into an agreement with ODJFS
• Permits the State Auditor to audit JFS and any JFS program and to charge JFS for the cost of the audits
• Permits the State Auditor to audit Medicaid or any Medicaid program, makes provisions for Medicaid to pay for the audits, and requires the Auditor to periodically report their findings to JMOC

House Bill 33 will now go to Governor DeWine for his consideration.