Ohio Senate Passes $60 Billion Budget with Controversial Tax Cuts and Stadium Funding

The Ohio Senate has passed a $60 billion state biennial operating budget that includes a tax cut for the wealthy, increased funding for public education, and $600 million in funding for the Cleveland Browns' new stadium. The total budget is expected to be around $200 billion once federal dollars come in. The Senate's version of the budget was voted on mainly along party lines, with 23 Republicans voting in favor and 10 Democrats voting against it.

The budget includes several contentious provisions, including a 2.75% flat income tax that could result in a loss of about $1.1 billion in the General Revenue Fund. Democrats have criticized the tax cut, arguing that it benefits the wealthy at the expense of lower-income individuals. The budget also includes funding for a new Cleveland Browns stadium, with a $600 million grant using unclaimed funds, which some have argued could be better spent on education or other social services.

In terms of education, the Senate's budget proposal includes increased funding for public schools, but still falls short of the $666-800 million needed to fully fund schools based on the Fair School Funding Plan (FSFP) from 2021. The Senate's version includes a cap on districts' rainy day funds to 50%, instead of 30%, which could mean that schools would have to refund anything above that back to the taxpayer to provide property tax relief.

Key Takeaways:

• The Ohio Senate has passed a $60 billion state biennial operating budget, which includes a tax cut for the wealthy and increased funding for public education.
• The budget includes $600 million in funding for the Cleveland Browns' new stadium, with a grant using unclaimed funds.
• The Senate's version of the budget raises the cap on districts' rainy day funds to 50%, instead of 30%, which could lead to funded schools refunding excess funds to taxpayers.
• Democrats have criticized the budget, arguing that it benefits the wealthy at the expense of lower-income individuals.
• The budget still falls short of the $666-800 million needed to fully fund schools based on the Fair School Funding Plan (FSFP) from 2021.
• The Senate's version of the budget reduces the scholarship to the top 2% of students, with strings attached, including a requirement to reside in Ohio for three years after graduation.
• The funding structure for the Browns' stadium differs from the House proposal, which included borrowing $600 million by issuing bonds.

Statistics:

• The total budget is expected to be around $200 billion once federal dollars come in.
• The 2.75% flat income tax could result in a loss of about $1.1 billion in the General Revenue Fund.
• The Senate's version of the budget includes a cap on districts' rainy day funds to 50%, instead of 30%.
• The budget still falls short of the $666-800 million needed to fully fund schools based on the Fair School Funding Plan (FSFP) from 2021.
• The Senate's version of the budget reduces the scholarship to the top 2% of students, with strings attached, including a requirement to reside in Ohio for three years after graduation.

Sources:

• https://www.news5cleveland.com/news/politics/ohio-politics/ohio-senate-passes-budget-giving-browns-600m-grant-tax-cut-to-wealthy-changes-school-funding
• https://www.ohiocapitaljournal.com/
• https://highered.ohio.gov/educators/financial-aid/sgs/gms/gms
• https://www.facebook.com/MorganTrauTV
• https://www.news5cleveland.com/