Ohio House Approves Historic Two-Year State Budget
The Ohio House of Representatives approved the historic two-year state operating budget bill on Friday, which now heads to the governor. The landmark legislation provides billions in investments that will build a foundation for the state's future.
"I've said it time and again, Ohio is our home, and we have worked hard to pass this budget that's going to help everyday Ohioans," Speaker Jason Stephens (R-Kitts Hill) said. "We've lowered, flattened, and permanently cut income taxes, made historic investments in education funding and school choice, preparing our workforce, and protecting our most vulnerable citizens. This budget will have a lasting impact on Ohio for years to come."
House Finance Committee Chairman, State Rep. Jay Edwards (R-Nelsonville), highlighted the efforts to help everyday Ohioans.
"We have fought for our constituents and our priorities in this transformative state budget," Edwards said. "I truly believe that all our members have something to be proud of and deliver to their districts."
By building upon the themes of focusing on growing our economy, educating our children, and protecting families, the budget includes the following:
Income Tax Cuts to Simplify and Strengthen Ohio's Economy
The budget includes an income tax cut that will simplify, flatten, and make more permanent the state income tax into two brackets. Under this new system, individuals earning between $26,050 and $100,000 will benefit from an income tax rate of 2.75%. Meanwhile, those earning above $100,000 will have a flattened rate of 3.5%. These reductions will alleviate the burden on hardworking Ohioans while stimulating economic growth and promoting financial well-being across the state.
Historic Investment in Primary and Secondary Education
The state's budget demonstrates an unwavering commitment to the future of Ohio's youth by making a historic investment of over $16 billion in primary and secondary education. By implementing the Fair School Funding Plan, we aim to provide all students with the necessary resources to thrive and succeed.
Landmark Changes to School Choice
Along with funding public education, the budget makes a landmark investment in school choice with a universal voucher program. This program is designed to safeguard lower-income families and offers options beyond traditional public schools. By expanding access to vouchers, Ohio ensures parents can make the best decisions for their children's education.
Merit-Based Scholarships for Academic Excellence
In order to help retain our best and brightest students, merit-based scholarships will be available to students who rank within the top 5% of their class to be used at one of Ohio's colleges or universities.
Significant Investments in Early Childhood Education
The state is investing over $286 million in early childhood education, underscoring its commitment to providing a strong educational foundation for Ohio's youngest learners. This will enable the expansion of early education programs and initiatives, empowering children with the tools they need to succeed academically and beyond.
Strengthening Childcare Infrastructure
To support working parents, the budget allocates $30 million to improve childcare infrastructure throughout the state. These funds will go towards enhancing the accessibility and quality of childcare facilities, ensuring that families have access to reliable and welcoming environments for their children.
Addressing Workforce Housing
In order to address Ohio's need for housing, the budget takes an all of the above approach that invests $250 million towards housing initiatives. This includes $100 million in tax credits dedicated to workforce housing, enabling the development of affordable housing units tailored to meet the needs of Ohio's workforce. Additionally, the budget prioritizes the development of single-family housing by allocating tax credits specifically for this purpose.
Focusing on the Future
The creation of the All Ohio Future Fund and an investment of $750 million will help drive job creation, attract investments, and foster innovation. By providing critical resources for site development, the fund positions Ohio as a shovel-ready destination for businesses seeking to thrive in Ohio.
Next Gen 9-1-1 Enhances Emergency Response Capabilities
The budget has dedicated funds for the implementation of the Next Gen 9-1-1 program in Ohio. This empowers first responders with advanced technology and capabilities to serve the public effectively in emergencies. With Next Gen 9-1-1, emergency services will have access to enhanced features such as accurate location data, multimedia messaging, and improved call routing, ensuring rapid response and saving precious time in critical situations.
The budget bill now moves to the governor for his consideration.