Inside Ohio's $60 billion state budget
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Allie Carl/Axios
Gov. Mike DeWine backed a tax cut for wealthy earners and sports stadium funding — while nixing his party's attempt to reform school property taxes — with the signing of a new two-year state budget this week.
Zoom in: The budget bill passed with Republican supermajorities and no Democratic support.
Some highlights:
💵 A new "flat tax." Anyone earning over $26,050 will pay an equal 2.75% income tax starting in tax year 2026. Previously, those making above $100,000 paid 3.5%.
- Legislative analysts predict the state will lose over $1 billion in revenue.
🏈 Browns funding. A new stadium in suburban Cleveland will receive $600 million, funneled from Ohioans' unclaimed funds — and $400 million will go toward other projects statewide.
- The Franklin County Convention Facilities Authority wants some of it to pay for Nationwide Arena renovations, per the Dispatch.
🩺 Medicaid coverage threatened. Over 750,000 Ohioans will lose Medicaid coverage — those insured by the program's expansion under the Affordable Care Act — if federal match funding dips below 90%.
- A transition plan would assist them toward "private insurance subsidies or charity care programs."
👶 Sharing is caring. A new child care cost-sharing program got $10 million, though state care overall was flat-funded.
Between the lines: The governor didn't get everything he wanted.
- Lawmakers threw out DeWine's proposed $1,000 child tax credit for kids under 7.
- And they opted against his plan to pay for a new Browns stadium by doubling the sports betting tax.
Yes, but: DeWine vetoed 67 provisions in the budget lawmakers sent him.
Those include:
📚 Library crackdown. Public libraries would have had to place material "related to sexual orientation or gender identity or expression" out of sight of minors.
- DeWine says "strong" existing obscenity laws should be enforced instead.
🏫 School tax reforms. Lawmakers wanted to do away with several kinds of property tax levies and limit how much reserve cash districts could carry year-over-year, among other changes.
- DeWine called the levies "important tools," and noted that limiting reserves might result in districts seeking tax levies more often, not less.
What we're watching: DeWine noted "the great need for property tax reform in Ohio" and said he'll convene a working group "to ensure this critical topic is given the attention deserved."
🗳 School board elections. Lawmakers wanted candidates to campaign with political party affiliations, but DeWine says nonpartisan boards have "served the interests of students and communities well."
📰 Tax on news. Ohioans will continue not to pay sales taxes on newspaper subscriptions, with the governor saying they "serve a critical role in our society to inform the public about important issues."
What's next: Lawmakers can override DeWine's vetoes with a three-fifths vote upon returning from summer break.
This story has been updated with more budget details.