COLUMBUS, Ohio — The Ohio House of Representatives passed the state’s new two-year operating budget. The nearly $75 billion proposal calls for an income tax cut among other things.
What You Need To Know
- The proposal is nearly $75 billion
- The proposal includes tax cuts
- It also includes restructuring school funding
After hours of debate on the floor Wednesday, the Ohio House passed the 2022-23 state operating budget with a vote of 70-27.
“We have crafted a budget that is balanced, responsible and truly meaningful. We are investing in Ohio’s priorities and Ohio’s future,” said Rep. Scott Oelslager, R-North Canton.
House Republicans pushed through a two-percent income tax cut despite the Biden administration telling states they could not cut taxes if they accepted money from the latest stimulus package. Ohio Attorney General Dave Yost, R-Ohio, is suing to change that in court.
“Think what we have heard is that you can’t fund a tax cut with federal dollars. We funded our tax cut with state dollars. So we think we’re on pretty solid ground,” said House Speaker Robert Cupp, R-Lima.
House Democrats are not so sure about the legality while also believing the tax cut only benefits the rich. According to the Institute on Taxation and Economic Policy, anyone making less than $60,000 per year, would pay $7 less per year. However, those making more than $200,000 per year, would see about a $612 cut.
“This tax cut jeopardizes hundreds of millions of dollars that this state needs, that this state is counting on,” said House Minority Leader Emilia Sykes, D-Akron. “Let me be very clear, the people in this state are counting on, but yet there’s a provision that jeopardizes hundreds of millions of dollars. I don’t count that as being fiscally responsible. We don’t have hundreds of millions of dollars to lose.”
The House’s proposal calls for a new way to fund the state’s schools among other things. Almost $2 billion are included to overhaul the funding model which the Ohio Supreme Court said was unconstitutional 24 years ago for over reliance on local property tax revenues.
The Fair School Funding Plan, as it’s called, increases yearly funding with $1.8 billion over six years beginning in 2023. It also changes the formula for spending based on school district’s expenses and wealth and not just property values.
“By adopting this predictable, sustainable, transparent framework, that is fair for every Ohio student no matter where they are from, House Bill 1 would fully and finally address Ohio’s hopelessly broken system for funding Ohio’s schools,” said Rep. Bride Rose Sweeney, D-Cleveland.
House Republicans also removed gun reform measures Gov. Mike DeWine, R-Ohio, had included in his proposal along with a $50 million tourism campaign to promote the state.
The fate of the budget now heads to the Senate where President Matt Huffman has promised to make changes.
By law, DeWine has to sign a new budget by June 30.
