Latest news with #IncomeTaxRelief
The Independent
2 days ago
- Business
- The Independent
Ohio governor signs 2-year, $60 billion budget that includes funding for football stadium
Ohio Gov. Mike DeWine has signed a two-year, $60 billion operating budget that flattens the state's income tax and sets aside $600 million in unclaimed funds for a new Cleveland Browns stadium. The Republican governor signed the budget late Monday night, about 45 minutes before the midnight deadline. He also issued 67 line-item vetoes, including one that would have cut funding for homeless shelters 'that promote or affirm social gender transition" and another that would have forced public libraries to keep materials on sexual orientation and gender identity away from those under 18. He also rejected lawmakers' plan to limit how much money school districts could carry over to 40% and another that would have required candidates for local school board races to be identified with partisan labels on the ballot. The moves mark the largest number of vetoes DeWine has issued since becoming governor in 2019. His previous record was 44 in 2023. The governor defended his decisions during a news conference Tuesday, noting that state lawmakers can now vote to override the vetoes and put the items back in the budget if they desire. The budget had been approved by the Republican-controlled state Legislature last week. GOP leaders touted its $1 billion in income tax relief, pathways to address Ohio's property tax crisis, and that it trims spending at administrative agencies and curtails regulations. Democrats voted uniformly against the bill, alongside a handful of Republicans, casting it as a collection of misguided policy tradeoffs that prioritize the wealthy over the middle class. The budget phases in a single flat-tax rate of 2.75% over two years, affecting anyone making over $26,050 annually. Those making less would continue to pay nothing. The plan eliminates the existing 3.5% rate for those making over $100,000 annually by the 2026 tax year. It also includes the $600 million Haslam Sports Group, owner of the Browns, which requested that the state help build a new domed stadium in suburban Brook Park south of Cleveland. DeWine had proposed doubling taxes on sports betting to help the Browns, as well as the Cincinnati Bengals and other teams who might seek facility upgrades. But the Legislature used some of the $4.8 billion in unclaimed funds the state is holding on to — in small sums, residents left behind from dormant bank accounts, uncashed checks and forgotten utility deposits. Currently, there's a 10-year time limit before that money reverts to the state. 'This is a win for taxpayers, and it will provide significant money to things that improve the quality of life in Ohio,' DeWine said of the stadium money. In a statement issued Tuesday, the Browns called the budget approval a 'tremendous milestone for our organization' and said DeWine and the Legislature worked together "to find a responsible way to support such a transformative project.' Lawmakers who represent Cleveland and surrounding communities, mostly Democrats, have blasted the proposal as a gift to the team's billionaire owners. Democrats outside the Legislature have threatened to sue if DeWine signed the plan, arguing it would be unconstitutionally raiding the unclaimed funds without due process.
Associated Press
7 days ago
- Business
- Associated Press
Ohio budget bill with Browns stadium funding, LGBTQ+ restrictions heads to Gov. Mike DeWine
COLUMBUS, Ohio (AP) — The two-year, $60 billion operating budget sent to Republican Gov. Mike DeWine calls for flattening Ohio's income tax and setting aside $600 million in unclaimed funds for a new Cleveland Browns stadium, among hundreds of spending decisions. He has until Monday to sign it and issue any line-item vetoes. State Sen. George Lang described the massive spending blueprint as 'a budget of abundance,' as he and other members of the GOP supermajority touted its $1 billion in income tax relief, pathways to address Ohio's property tax crisis and how — like the Trump administration's Department of Government Efficiency initiative — it trims spending at administrative agencies and curtails regulations. Democrats voted uniformly against the bill, alongside a handful of Republicans, casting it as a collection of misguided policy tradeoffs that prioritize the wealthy over the middle class. Those opponents argued that joining what the Washington, D.C.-based nonprofit Tax Foundation has described as a 'flat tax revolution' in the states would stand to mostly benefit higher income earners at the expense of local governments and libraries. Another key Democratic sticking point: Though it increases public education funding by about $3 billion over the biennium, the bill underfunds, by hundreds of millions of dollars or more, the final stage of a bipartisan, legislatively approved overhaul of Ohio's unconstitutional school funding system. Here's a closer look: Paying for an NFL stadium It includes the $600 million Haslam Sports Group, owner of the Browns, requested from the state to help build a new domed stadium in suburban Brook Park south of Cleveland. DeWine proposed doubling taxes on sports betting to help the Browns, as well as the Bengals and other teams who might seek facility upgrades. But the Legislature settled on using some of the $4.8 billion in unclaimed funds the state is holding on to — in small sums residents left behind from dormant bank accounts, uncashed checks and forgotten utility deposits. The budget earmarks $1.7 billion from that fund to create an Ohio Cultural and Sports Facility Performance Grant Fund and designates the Browns as the first grant recipient. The budget doesn't explicitly include money for the Bengals, who reached a tentative deal on stadium renovations with their home county Thursday, but the fund would assist such projects going forward. Lawmakers who represent Cleveland and surrounding communities, mostly Democrats, blasted the proposal as a gift to the team's billionaire owners. Democrats outside the Legislature threatened to sue if DeWine signs the plan, arguing it would be unconstitutionally raiding the unclaimed funds without due process. The Republican attorney general vowed their effort would fail. Taking on taxes The budget phases in a single flat-tax rate of 2.75% over two years, effective on anyone making over $26,050 a year. Those making less would continue to pay nothing. The plan eliminates the existing 3.5% rate on those making over $100,000 a year by the 2026 tax year. Ohio would be the 15th state with a flat tax rate if the plan is enacted. Republicans tout that as a benefit to working Ohioans and the economy and another step in their continuing efforts to reduce the state's tax burden, with the aim of some of them being to eventually eliminate the income tax entirely. Institute on Taxation and Economic Policy, a Washington, D.C. nonprofit, found 98% of the benefit would go to the top 20% of income earners, or those making over $139,900. To address skyrocketing property taxes largely collected by public school districts, the bill prohibits any new emergency or new replacement levies and requires wording changes on ballots when seeking any future levies. It also caps districts' operating budget carryovers, requiring them to spend down surpluses that exceed 40% or return the excess to taxpayers. Opponents argued that penalizes districts that have been good stewards of their money. Trimming government programs and oversight Echoing the approach of Trump's DOGE as one of that program's architects runs for governor with Trump's support, lawmakers boasted of the legislation's 3% to 4% cuts to administrative agency budgets. Beyond that, it defunds, defangs, reassigns or abolishes bodies that punish election law violations, craft public school policy, monitor rare diseases, field complaints about Ohio's state prisons and oversee state spending on Medicaid — the largest and most foundational portion of the state budget. Most of the affected boards, commissions and committees were bipartisan. It also reduces funding for tobacco use prevention, food banks and several housing programs, while devoting $7 million to quantum computing research at Miami University and $5 million to child cancer research. In anticipation of potential cuts to the federal budget, Republicans also included a trigger mechanism that would end coverage under Medicaid expansion if the federal government match falls below 90%. Democrats criticized the decision, which affects health insurance coverage for more than 800,000 Ohioans. Targeting LGBTQ+ issues The legislation declares as not only state policy but 'incontrovertible reality' that there are 'only two sexes, male and female.' It prohibits, to the extent allowed under federal law, the distribution of Medicaid funds for mental health services that 'promote or affirm social gender transition' and bans state funds from going to youth shelters that do the same. It also would require public libraries to move children's books 'related to sexual orientation or gender identity or expression' out of view of minors. Republican Rep. Gary Click, a Baptist pastor, called it unfortunate that lawmakers have to assert such positions on sexuality but said it's what constituents want. 'What's next?' he asked. 'In the next budget, do we have to say water is wet and the Earth is round?' Senate Democratic Leader Nickie Antonio, the state's first openly gay legislative leader, rebuked Republicans for sowing 'the seeds of division, of suspicion and shame' and suggesting LGBTQ+ people are 'too extreme to be seen in the light of day.' 'These actions aren't going to erase us,' she said. 'Just because you put the materials behind a curtain doesn't mean the people suddenly — poof! — don't exist. Because you know what? We do. We are the very fabric of every single one of your communities in every single one of your districts.'
