South Ohio News

State Senator Sandra O'Brien and her fellow Ohio Senate members have approved the state's Biennial Operating Budget. This decision continues the Senate's commitment to fiscal responsibility, aiming to reduce the tax burden by $1 billion.

"I'm proud to support this transformational and fiscally responsible operating budget for Ohio," said Senator O'Brien. She emphasized the importance of reforms in property taxes and the introduction of a flat state income tax as an investment in Ohio's future.

Senate President Rob McColley stated, "Our constitutionally balanced budget represents a historic investment in the people of Ohio." He highlighted that taxes are significant issues for families and expressed satisfaction with achieving substantial property and income tax relief.

The process saw collaboration between the Senate and House to reconcile differences efficiently over the past week. "I am very pleased with the professionalism and good faith negotiations with our colleagues in the House," remarked Senate Finance Chairman Jerry Cirino. He noted that this budget aims to build a foundation for economic growth within Ohio.

In response to concerns about property tax increases, changes were made to modernize the system. The new budget eliminates new emergency or replacement levies and requires clearer rules for future ballot issues. "There is no excuse for retirees who worked hard to pay off their homes to ever have to worry about losing their homes because of skyrocketing property taxes," said Senate President McColley.

The role of County Budget Commissions will be enhanced under this budget, allowing them more authority in reviewing financial impacts on property owners. School districts will maintain a 40% surplus for operating budgets, with excess funds returned to taxpayers.

Local food banks also received additional funding through the Temporary Assistance for Needy Families Block Grant program, enabling them to purchase food products, support summer meal programs, and equip pantries.

The implementation of a flat income tax is another key feature of this budget. Starting in tax year 2026, a 2.75% flat rate will apply. For 2025, the highest bracket will see an immediate reduction from 3.5% to 3.125%. McColley noted, "I'm proud of the progress we have been able to make over the last decade by reducing the overall number of income tax brackets from nine down to two."

Additionally, public education sees nearly $1 billion more in funding compared to previous budgets, continuing investments from prior years that added over $3 billion into public schools.

President McColley stated that all children should have opportunities to reach their potential: "Results matter, and we want to reinforce that message by recognizing the importance of performance in public schools."

The $60.23 billion budget reflects an approach aimed at economic growth by reducing bureaucratic burdens associated with high taxes and regulations. The Senate believes such measures will encourage consumer spending and make Ohio an attractive place for families.