Senate is wanting to expand a two percent personal income tax cut. In addition to slashing state dollars for rural broadband. Moreover, increase the amount kids get for school vouchers as part of its two-year budget.
Senate Budget Bill
The $75 billion budget bill is the third and final one to be introduced by the Senate. In February, Ohio Governor Mike DeWine unveiled his plan. Then in March, the House released its own.
The three groups will have until June 30th to reach a compromise because of Ohio’s next fiscal year is to start on July 1st. This will all happen once the Senate passes its plan.
Below is listed where the plans differ.
Income Tax Cut
With a two percent income tax cut, the Ohio Senate passed their budget. It would cost $380 million over the life of the two-year budget. Moreover, the Senate wants to go bigger.
“We want to keep it and also expand it,” Senator Matt Dolan.
In addition, they are adding a sales tax cut.
“There are companies that help other businesses that find temporary or permanent workers. It is for employment services.
“Ohio is one of the few states that still tax these services,” Dolan said.
There is skepticism with Democrats in the House regarding the income tax cut. Ohioans would have to earn more than $200,000 before they saw a $100 decrease, they are saying.
House and Senate Budgets
How they fund K-12 education is the biggest difference between the House and Senate Budgets.
The lawmakers included a very ambitious plan that is going to rewrite the school funding formula. This is when the House does pass its budget. Moreover, it would increase the base amount schools do get per student. Then change how Ohio does calculate what a district can raise. Thus eliminate any exceptions to the formula they call caps and guarantees.
The Senate leadership does think the number is wrong and it’s estimated to cost an extra $1.8 billion over the next six fiscal years.