COLUMBUS, Ohio — The Ohio Senate has passed a $60 billion state biennial operating budget, which includes a tax cut for the wealthy, increased public education funding, and a $600 million grant to the Cleveland Browns for their new stadium.
The budget is expected to be around $200 billion once federal dollars come in.
House Bill 96 was voted on mainly along party lines, 23-10. State Sen. Bill Blessing (R-Colerain Township) joined the Democrats to vote no.
This is a developing story and will be updated.
Major items in the Senate budget
School funding
The senators increased the amount of money going to public schools from the House's proposal. The Senate budget gives public schools about $100 million more than the House. Although they follow most of the House's proposed budget, which only gives schools about $226 million for school funding, but $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
This $100 million added back would only go to high-performing or "improving" districts.
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However, to be fully funded based on statistics from the Fair School Funding Plan (FSFP) from 2021, schools would need an additional $666-800 million, compared to the $226 million given by the House. Still, the Senate's version is closer to the FSFP than the House's.
"We're following the funding scheme that was put together in the first place," Senate Finance Chair Jerry Cirino (R-Kirtland) said. "Our bill is the closest way to get there."
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 to provide property tax relief.
"The priority is not, obviously, in fully funding education, investing in our children and our future," Senate Minority Leader Nickie Antonio (D-Lakewood) said.
Browns
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's other people's money that the state is holding, from things like forgotten bank accounts, rent or utility deposits or uncashed insurance policies. The Ohio Department of Commerce's website states the state is sitting on $4.8 billion in unclaimed funds.
"Are you more hopeful that the governor won't veto this version of the Browns' proposal versus the House's?" I asked Cirino.
"Well, he made it pretty clear, as I recall, publicly that he did not like the debt arrangement for the $600 million," Cirino responded. "I'm pretty confident and feel good that the governor and the House will look at our approach to it."
The Democrats remain staunchly opposed to the project.
"If they could find that money for the Browns and their stadium's move to Brook Park, why didn't they decide to use those funds for the schools?" Antonio asked.
Income tax
The budget also includes a 2.75% flat income tax.
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%.
State data reveals that this could result in a loss of about $1.1 billion in the General Revenue Fund.
"The dollars that we're foregoing in the flat tax are already incorporated into our overall spending," Cirino said.
RELATED: Ohio Senate GOP moves to give wealthiest Ohioans tax cut
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.
"There have been a lot of cuts to social services that tend to benefit people who are lower income. How do you defend giving a tax cut to the wealthiest people?" I asked Cirino.
"Well, look, the tax cut... We think it's going to be good for the economy, it's going to be good for attracting people," Cirino responded.
Antonio disagreed.
"It's a gift to the wealthiest among us on the backs of the poorest and lowest-income and middle-class folks in the state of Ohio," she said.
College aid
The senators propose giving $20,000 to top high school students to encourage them to stay in the state for their higher education.
The Governor’s Merit Scholarship was passed in the House budget. Already existing, this language would extend the proposal that gives the top 5% of each graduating high school class $5,000 a year to attend a public or private school in Ohio.
But the Senate made some changes in their proposal, reducing the scholarship to the top 2% of students. The money would also have strings attached.
The scholarship recipients would be required to reside in Ohio for three years after graduation. There would be an "expectation" that the money would be returned if they leave within the three years.
RELATED: Would you live in Ohio for 3 years for $20,000 in college aid?
Next steps
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.
The budget must be passed by the end of June.
