Latest news with #RepublicanBudgetPressConference
Yahoo
2 days ago
- Business
- Yahoo
Ohio Senate GOP moves to give wealthiest Ohioans tax cut
Senate President Rob McColley, R-Napoleon, speaks at the Ohio Senate Republican Budget Press Conference. Sen. Jerry Cirino, R-Kirtland, the chair of the Senate Finance Committee, stands in the background. Photo: Morgan Trau, WEWS Ohio Republican senators have proposed a flat income tax for the state's top earners, which would result in a projected $1 billion loss in the general revenue fund. Bailey Williams is like the average Ohioan — earning less than six figures a year. According to census data, the median income in the state is about $68,000. He's worried about the Senate's newly proposed state budget. 'The services that made me who I am today, public education made me who I am today. I worry about those opportunities being there for my younger siblings,' Williams said. He is also a researcher with the nonpartisan organization Policy Matters Ohio and is evaluating a budget provision — one that creates a flat income tax of 2.75%. There are three income tax brackets in Ohio. Those making up to $26,000 do not need to pay state income tax. Ohioans earning between $26,000 and $100,000 pay a tax of 2.75%. Those making more than $100,000 have to pay 3.5%. Senate President Rob McColley (R-Napoleon) said that the highest earners in the state will have their income tax payment reduced to 2.75%. 'Every tax cut we do in the future will involve every single person equally, on a percentage basis,' McColley said. State data reveals that this could result in a loss of about $1.1 billion in the General Revenue Fund. How would Ohio make up the deficit from the tax? 'One of two ways,' Williams said. 'We're going to see increases in regressive taxes, most likely the sales tax, or we have to make do with less — less government services.' Many cuts for programs that benefit lower-income families have already been proposed in the budget. Funding for schools, Medicaid, libraries, lead abatement, food banks and child care face funding decreases from the current status or from the governor's budget. When McColley was asked how he defends cuts to Medicaid, lead poisoning prevention and child care while allowing a lower tax rate for wealthier Ohioans, he said the 'growth in Medicaid spending has been exponential.' According to the Legislative Service Commission, a nonpartisan agency that works with the legislature, the proposed budget would result in a 4% decrease in spending, with billions of dollars in cuts. He said that there was already an 'awful lot' of lead program funding and said that they were keeping child care the same as before. However, the budget would cut the governor's proposal of offering Publicly Funded Child Care to families earning up to 160% of the federal poverty level, keeping it at the current 145% threshold. 'No multimillionaire needs a $10,000 tax cut bankrolled by cutting lead abatement or Medicaid,' Williams said. McColley said the elimination of 11% of the state's income tax revenue would not actually impact funding because he predicts companies will move to Ohio to take advantage of that lower tax rate. 'A lower tax burden has had a positive economic development and brought more jobs to the state,' McColley said. 'It's brought more investment in the state.' The budget will continue to be heard, and a final version will need to be agreed upon by the Senate and House by the end of June. Click here to learn more about the House's passed budget. Follow WEWS statehouse reporter Morgan Trau on Twitter and Facebook. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
3 days ago
- Business
- Yahoo
Ohio Senate GOP budget increases school funding, gives Browns $600M grant, creates flat tax
Senate President Rob McColley, R-Napoleon, speaks at the Ohio Senate Republican Budget Press Conference. Sen. Jerry Cirino, R-Kirtland, the chair of the Senate Finance Committee, stands in the background. Photo: Morgan Trau, WEWS The Ohio Senate has announced its version of the state budget, one that provides a slight increase in public school funding, gives a $600 million grant to the Cleveland Browns for their new stadium and creates a flat income tax of 2.75%. Senate President Rob McColley (R-Napoleon) and Finance Chair Jerry Cirino (R-Kirtland) announced their proposed amendments to the state's biennial operating budget on Tuesday afternoon. House Bill 96, the number for the House's budget bill, passed in April. The senators increased the amount of money going to public schools compared to the House's proposal. The Senate budget gives public schools about $100 million more than the House. Although it follows most of the House's proposed budget – which only gives schools about $226 million for school funding, or $550 million total – the Senate changed the funding 'guarantee' amount. Right now, some districts have guarantees that a portion of their funding will not be reduced, even if their enrollment goes down. However, to be fully funded, based on statistics from the Fair School Funding Plan from 2021, schools would need an additional $666-800 million, compared to the $226 million given by the House. They also raised the House proposal's cap on districts' rainy day funds to 50%, instead of 30%. This would mean that the schools would have to refund anything above that back to the taxpayer in a method legislators want to use to provide property tax relief. The Senate's budget proposal still includes $600 million for a new Cleveland Browns stadium in Brook Park. However, the funding structure differs from what the Browns proposed and what the House approved earlier this year. The House proposed borrowing $600 million by issuing bonds and repaying the debt, with interest, over 25 years, at a cost of about $1 billion. The Senate is proposing a $600 million grant for the stadium using unclaimed funds. That money is property of Ohioans held by the state, things like forgotten bank accounts, rent or utility deposits or uncashed insurance policies. The Ohio Department of Commerce's website says the state is sitting on $4.8 billion in unclaimed funds. The Senate believes the state will more than recoup that investment through sales tax, income tax and commercial activity tax revenues from the 176-acre Brook Park stadium district. The budget also includes a 2.75% flat income tax. This mirrors a bill currently in the House, which would eliminate the separate brackets of the non-business income tax. People making more than $102,400 would have their taxes reduced from 3.5% to 3.125% in 2025 and then down to 2.75% in 2026. The lower bracket would stay at 2.75%. Now, the Senate and House leaders will enter a conference committee, a closed-door negotiation period to create a final budget. Once a decision is made, both chambers must pass the combined bill. If it passes through both sides, it will be sent to Gov. Mike DeWine for review. In the past, he issued dozens of line-item vetoes on operating budgets. Line-item vetoing is the ability for the governor to pick and choose which policies within a larger piece of legislation get to stay or must go. DeWine is adamantly against giving the bond package to the Browns, and we have asked repeatedly if he plans to veto it. He says he hopes it doesn't get to that point. The budget must be passed by the end of June. This is a developing story and will be updated. Follow WEWS statehouse reporter Morgan Trau on Twitter and Facebook. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
