COLUMBUS, Ohio — Ohio legislative leaders say a compromise has been reached on the state's operating budget — sharing early details that the wealthy will get a tax cut and the Cleveland Browns get hundreds of millions for their new stadium. Despite efforts, there has been no word on education funding.
The lawmakers have been writing like they're running out of time. Because they are. The legislation must be passed by the end of June.
"I think all big remaining issues are resolved," House Finance Chair Brian Stewart (R-Ashville) said.
Stewart gave some details before the legislation is officially announced.
The Senate leaders had non-negotiables that Stewart had to deal with.
One of those Senate non-negotiables is its 2.75% flat income tax, meaning the highest earners in the state, those making more than $100,000 a year, will no longer have to pay 3.5% in income tax, making them equal to the lower tax bracket.
RELATED: Ohio Senate GOP moves to give wealthiest Ohioans tax cut
State data reveals that this could result in a loss of more than $1.1 billion in the general revenue fund. That money was made up by cutting funding for House lawmakers’ community projects. Stewart told me last week that those provisions were priorities to him. He got them back in.
RELATED: 'Neither side will compromise': Ohio House, Senate begin budget reconciliation
"We found a way to give that important tax relief to Ohioans while also doing a lot of the priorities that we had here in the house," he said.
"With the House's earmarks being back in the budget, how are we going to make up the deficit from the flat tax?" I asked him.
"The House is agreeing with the Senate to rescind an awful lot of small income and sales tax exemptions. Individually, they're it's not that much money at issue, but when you put them all cumulatively together — it's a sizeable amount of money that we are going to return to the state," he said.
Other than that, the lawmakers would be shifting a pool of money from interest earned on state funds and different accounts to the general revenue fund, he added.
The lawmakers also agreed on a plan for the Cleveland Browns' new stadium.
They ultimately opted to draw millions from the unclaimed property fund, providing a cash grant for the Browns using other people’s money. The state is holding $4.8 billion in unclaimed funds from old bank accounts, uncashed checks, utility deposits, life insurance payouts, retirement savings accounts and stocks and bonds.
Stewart said the final budget proposal calls for the state to take ownership of $1.7 billion of that money. Lawmakers are earmarking $600 million for the Browns and putting $400 million into a special sports and culture fund, which could pay for other projects.
RELATED: Ohio lawmakers settle on unclaimed funds to put $600M into new Browns stadium
Democrats have not seen the budget yet. New House Minority Leader Dani Isaacsohn (D-Cincinnati) said that the inclusion of the flat tax will disproportionately hurt lower-income and middle-class families.
"Because of the choices that the Majority has made, they are choosing to serve a sliver of the state, and it's the sliver that needs the least support," Isaacsohn said.
Stewart said the House is making sure that social programs will be included.
"We're still going to take care of all the major programs I think Ohioans expect us to do," the chair said.
One of the main differences between the House and the Senate was how much they allocated to public schools. Both cut hundreds of millions from the expected budget, but the Senate restored the current funding formula and gave $100 million back. Democrats aren’t optimistic that additional education support will be given.
"We are also working to fix as many bad things as we can," House Finance Committee Ranking Member Bride Rose Sweeney (D-Westlake) said.
I tried to get some insight on school funding.
"Can you run through the education changes that have been made?" I asked Stewart.
"Let’s do that later," he responded.
The final budget should be voted out by the end of the week.
News 5's Michelle Jarboe contributed to this report.
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