The Ohio Senate, under Republican control, has approved an $86 billion state budget proposal. This budget, passed along party lines, incorporates significant tax reductions, increased funding for school vouchers, and a range of policy adjustments impacting education, public assistance, and more. While the budget now moves to the House for consideration and requires Governor Mike DeWine's signature, its key provisions offer insight into the Senate's priorities.
The extensive 7,000-page document includes a proposed $1.5 billion in tax cuts and $2 billion allocated to school voucher programs. It also addresses several controversial policy areas, including K-12 education reform, restrictions on flavored vaping products and certain social media applications, and limitations on faculty strikes and diversity initiatives within public universities.
Negotiations with the GOP-controlled House are anticipated, with some House Republicans favoring a swift adoption of the Senate's version despite significant differences from their own April budget proposal. Internal disagreements within the House raise questions about the path forward and potentially explain the inclusion of policy changes within the budget prior to formal hearings.
Critics have targeted proposed spending cuts to childcare, public education, food banks, and affordable housing, labeling the budget as "heartless." A closer look at the Senate's proposed spending and policy changes reveals the following key areas:
Education:
- A phased rollout of a universal voucher program over two years, allocating roughly $2 billion to provide income-based scholarships for Ohio children to attend private schools.
- Elimination of a House provision establishing a $40,000 base salary for teachers and removal of expanded funding for free school meals in public schools.
- Restrictions on diversity and inclusion training at public universities, a ban on faculty strikes, and limitations on universities taking stances on controversial subjects like abortion and climate change.
- Transfer of K-12 education oversight from the Ohio State Board of Education to a governor-appointed official, significantly altering decision-making power regarding academic standards, curriculum, and district evaluations.
- Continued implementation of the revised school funding formula from the previous two-year budget, incorporating updated cost adjustments for teacher salaries, transportation, and technology.
Taxes:
- $1.5 billion in income tax deductions over two years, achieved partially by reducing the number of tax brackets from four to two.
- Elimination of the Commercial Activities Tax for a majority (90%) of businesses currently subject to it.
- Reinstatement of Governor DeWine's housing tax provisions, including a state Low Income Housing Tax Credit program, deductions for homeownership savings accounts, and a tax credit for affordable single-family housing construction.
- Elimination of sales tax on specific baby products.
- Exclusion of a proposed $2,500 child tax deduction.
Public Assistance Programs:
- Significant reductions in state funding for food banks despite increased demand.
- Hourly wage increases for in-home Medicaid care providers to $17 in FY24 and $18 in FY25, addressing workforce shortages.
- $16 million allocated to a rental assistance program for pregnant women in unstable housing.
- An increase in the income eligibility limit for government-funded childcare to 145% of the federal poverty level.
- Increased requirements for food stamp recipients, including providing a phone number and photo ID.
Other Items:
- Lowering the minimum age for police officers from 21 to 18.
- Banning the sale of flavored tobacco products.
- Reallocation of $1 billion in earmarks to establish a One Time Community Investment Fund.
- $16 million designated for an August special election concerning abortion rights.
- Requiring parental consent for social media platform usage by Ohio children under 16 and prohibiting state employees and contractors from using Chinese-based social media platforms like TikTok on state devices.
