Ohio would cut taxes for the wealthy and use unclaimed funds to pay for a new Cleveland Browns stadium under a budget passed by Senate Republicans.
The Ohio Senate voted largely along party lines June 11 for its version of the state’s two-year spending plan. It’s not a done deal: House and Senate lawmakers will hash out their differences and send a final budget to Gov. Mike DeWine before June 30.
At that point, DeWine can veto individual items he doesn’t like.
“This is a very exciting and bold budget,” Sen. Jerry Cirino, R-Kirtland, said. “It clearly displays the Senate’s intent to support families, children, life, economic growth and the delivery of health care services and education.”
Here’s what the Senate passed and how it would affect your wallet.
Ohio Senate pitches flat income tax
The biggest part of the Senate budget would flatten the income tax to 2.75% for everyone except low-income Ohioans, who aren’t taxed. Right now, Ohio taxes people who earn over $100,000 at 3.5% and those making $26,051 to $100,000 at 2.75%.
Ohio Republicans have gradually slashed the income tax, and some want to eliminate it altogether. Democrats say the loss of revenue will jeopardize services.
Using unclaimed funds for Browns stadium
The House, Senate and DeWine pitched drastically different plans to help the Browns build a stadium and entertainment district in Brook Park.
The Senate version would use $1.7 billion in unclaimed funds to pay for sports and cultural projects, with $600 million reserved for the Browns. The state’s $4.8 billion pot of unclaimed funds includes paychecks, security deposits and other money abandoned by Ohioans.
The money for sports facilities has sat there for a decade or longer.
Cirino believes the Senate put forward the best plan − one that doesn’t force the state to take on debt or raise taxes. Not everyone is convinced.
“If they could find that money for the Browns and their stadium move to Brook Park, why didn’t they decide to use those funds to fully fund the schools or for the myriad of programs that they’ve said we don’t have enough money to fund right now?” Senate Minority Leader Nickie Antonio, D-Lakewood, said.
School funding and property tax relief
The Senate spent more on public schools than the House and phased in the school funding formula. But the plan cuts money for some districts compared to 2025 and guarantees all schools their 2021 funding, without accounting for recent inflation.
Senate Republicans also added money for schools that perform well or make demonstrated progress.
The plan aims to provide property tax relief by:
Cuts to Ohio Medicaid
The Senate budget would cut Medicaid funding by 1% in 2026 and 1.5% in 2027. Like the plan from DeWine and House Republicans, it would ax Medicaid expansion coverage if the federal match falls below 90%.
The budget also doesn’t allow Medicaid to pay for gender-affirming mental health care or diversity, equity and inclusion initiatives.
What else is in the Senate budget?
The Senate budget also:
State government reporter Haley BeMiller can be reached at hbemiller@gannett.com or @haleybemiller on X.
What do you think of what lawmakers did in the state budget?
This article originally appeared on The Columbus Dispatch: Tax cuts, Medicaid, schools, Browns stadium: What Ohio Senate budget would mean for you
Reporting by Haley BeMiller, Columbus Dispatch / The Columbus Dispatch
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