COLUMBUS – Ohioans would see lower income taxes and more money for water quality initiatives, local governments and libraries under a two-year state budget proposal introduced Tuesday in the Republican-controlled state Senate.
The Senate’s version removes the bottom two income tax brackets and includes an 8 percent across-the-board income tax cut over two years.
Ohio tax revenue has exceeded projections this fiscal year and Senate President Larry Obhof (R-Medina) says lawmakers factored that cushion into their considerations.
“Our role in the legislature is to ensure wise stewardship of your tax dollars, responsibly investing in critical services, while seeking ways to make government efficient and accountable to the taxpayer,” he said.
Unlike the $69 billion proposal approved by the GOP-led House the Senate budget plan preserves an income tax deduction on the first $250,000 earned by small businesses and would maintain tax credits for the motion picture industry.
The proposal also includes $550 million that Republican Gov. Mike DeWine proposed to boost educational wraparound services plus $125 million more toward education-related spending, including private-school scholarships and more money for growing school districts whose funding has been capped. The Senate’s budget also includes $100 million in additional funding for school facility construction with an emphasis on supporting low-income school districts, Obhof said.
Among other provisions, the budget increases funding for foodbanks and community service organizations like the Boys and Girls Clubs and the United Way family stability programs. The budget measure provides funding for a pilot program to help veterans who struggle with post-traumatic stress disorder.
Hearings in the Finance Committee begin Wednesday and will continue on Thursday, Friday and Monday.
The General Assembly faces a June 30 deadline to get a budget signed by DeWine.