(The Center Square) – The Ohio House on Wednesday afternoon passed an $88 billion general fund budget that includes tax cuts and an increase in teacher base pay.
It does not include money for universal school vouchers, which failed to gain favor for the second consecutive year.
The two-year operating budget, which will need to be reconciled with a Senate version when passed, did include an increase in the school voucher program, $1.3 billion for K-12 public education, more money for child care and increased coverage for Medicaid.
Rep. Jay Edwards, R-Nelsonville, chairman of the House Finance Committee, called it a budget for every Ohioan.
“I’m proud to stand up today in support of the Ohio House budget,” Edwards said.
Substitute House Bill 33 increases the income limit for the school voucher program from 250% to 450% of the federal poverty level. Rep. Tracy Richardson, R-Marysville, said that a family of four making $135,000 would be eligible for private school vouchers, representing nearly 75% of children ages 6-18 in the state.
“This is historic. It acknowledges parental rights in education and recognizes the value of competitive-based education,” Richardson said.
The budget also includes fully funding the fair school funding plan for the next two years and moves starting salaries for teachers to $40,000 annually.
“Today we are putting Ohio’s children first and funding their future,” said Rep. Bride Rose Sweeney, D-Westlake. “The state will be much closer to actually paying its fair share. This represents nothing less than a $1.3 billion commitment to public education, the largest increase in recent history.”
The committee removed a controversial flat tax plan, and instead, the House passed a tax cut expected to impact those earning $90,000 or less the most. Rep. Bill Seitz, R-Cincinnati, said everyone in Ohio making below $92,000 would be paying a flat income tax of 2.75%.
It also exempts baby products from sales and use tax, increases the homestead exemption, creates a $1,000 tax credit for volunteer first responders and creates a low-income housing tax credit program.
“What we are doing in this budget is flattening the tax in Ohio from the bottom up,” said Rep. Bill Seitz, R-Cincinnati. “We are targeting our tax cuts at those who will most benefit from it. I know a completely flat tax is the holy grail for folks on my side of the aisle. We are making progress.”
The budget increases Medicaid coverage for dental and in-home health care workers and will cover some obesity treatments.
House budget writers said they made it a point to use one-time federal money on one-time programs rather than committing additional revenue to ongoing projects.
For example, the committee reduced Gov. Mike DeWine’s proposed investment in the All-Ohio Future Fund to $500 million and earmarked the money for specific projects. As previously reported by The Center Square, the governor proposed a goal to develop large, shovel-ready sites to lure economic development to each area of the state by creating the All Ohio Future Fund, a one-time investment of $2.5 billion to prepare infrastructure for large economic development sites.
The House budget also committed $250 million to downtowns, townships and county fairs and added more money for water and sewer infrastructure upgrades.
“The impact of one-time money available has made this budget more of a challenge, but it’s just that, one-time money. It’s going to help every Ohioan in one form or another,” said Rep. Don Jones, R-Freeport.
Democrats were also generally pleased with the budget that includes $60 million for child care.
“Everyone had a voice,” Sweeney said. “It is not victories for Democrats. It is not victories for Republicans. It’s victories for Ohioans. This is what putting people first looks like.”
