Ohio House Approved Main Operating Budget; Senate Begins Work
Ohio House lawmakers on Wednesday approved an $75 billion budget blueprint, sending the bill to the Ohio Senate for further work and review.
House members made a substantial number of changes from the “as introduced” version which was submitted to the legislature by Governor DeWine on February 1. Below are highlights from the House-passed budget plan.
Income Tax Cut: The legislation includes a 2 percent across the board personal income tax rate cut, which will reduce taxes and withholding amounts by approximately $380 million over the biennium. Coupled with recently passed legislation conforming Ohio’s tax code with federal law, the House has provided a nearly $500 million in personal income tax cut this biennium.
COVID Relief Grants: The House plan continues $155 million in grants for industries negatively impacted by the COVID-19 pandemic, including newly formed businesses. This is an ongoing commitment to Ohio industries as Ohio recovers from the economic impacts of the pandemic. This will be available starting July 1 and includes:
o $100 million for restaurants and bars
o $25 million for the lodging industry
o $20 million for entertainment venues
o $10 million in relief for new businesses
Main Street Job Recovery Program: The measure provides $500,000 over the biennium to be used for grants to non-profit organizations to create business development and employment opportunities targeted to low- and moderate-income individuals as well as individuals of the re-entry population.
Appalachian Assistance: $10 million each fiscal year for the Foundation for Appalachian Ohio. The bill also includes $4 million each fiscal year for the GRIT Program to establish virtual workforce development centers and place un- and underemployed adults into jobs within 11 counties of the Ohio Valley Regional Development Commission’s service area.
Broadband: The bill includes language from House Bill 2, creating the Ohio Residential Broadband Expansion Grant Program and the Ohio Broadband Expansion Program Authority, and includes more than $200 million to support grants under the initiative. The plan targets the problem of last mile connectivity to households where it remains cost-prohibitive for private providers to otherwise extend their service.
Eminent Domain: The bill prohibits park districts in counties with a population between 220,000 and 240,000 (Lake and Mahoning counties according to the 2010 Census) from using eminent domain to appropriate property for recreational trails. Specifies that this prohibition expires on July 1, 2026. (Note: GOPC has opposed other bills that are seeking to address this issue, however this is very targeted to a specific circumstance).
Not included in the final House proposal was an amendment which GOPC has pursued which would provide funding to the Clean Ohio Revitalization Fund. We will continue to pursue this issue through the legislative process and will provide updates on both our website and social media channels.
The budget now heads to the Ohio Senate, where preliminary hearings are been underway for the past two weeks. Final enactment of the budget will need to happen by late June. The budget will take effect on July 1, 2021 and cover the next two state fiscal years, 2022 and 2023.