THE CENTER SQUARE – A budget plan that contains $1.5 billion in tax cuts over two years and universal private school vouchers received mixed reactions as it begins to work its way through the Ohio Senate.
Republicans called the plan "bold" for its changes for education, taxpayers and revitalization efforts. It was introduced Tuesday and should go through committee hearings the next couple of weeks. The House and Senate must agree on a budget to send to Gov. Mike DeWine, who has to have it signed by July 1.
“Challenging the status quo is difficult,” Senate President Matt Huffman, R-Lima, said. “Now is the time to make the bold changes necessary to focus on the results our taxpayers should demand, the results our parents should expect for their children’s education and the results our state desperately needs to revitalize crumbling neighborhoods in our city centers.”
Senate Democrats want time to absorb the proposal that matches the House school voucher plan making families eligible at 450% of the poverty level. However, they expanded it on a sliding scale with amounts adjusted for higher income levels. The Senate version makes all students eligible for at least a 10% voucher.
“We’ve been given a lot to digest because the new budget bill makes complicated changes,” Senate Democratic Leader Nickie J. Antonio, D-Lakewood, said. “One of my biggest concerns continues to be the additional expansion of private school scholarship vouchers. A program that was intended to help low-income children could now subsidize wealthy families to continue to send their children to private schools. Our caucus will be spending the next few days digging into the details to follow the money. Ultimately, we want a budget that creates opportunity for all Ohioans.”
The Senate budget also reduces the number of state tax brackets from nine to four. Phased in during the next two years, the marginal rates will be 2.75% over $26,050 and 3.5% over $92,150.
Rea Hederman Jr., executive director of the Economic Research Center and vice president of policy at the Buckeye Institute, praised the plan and other proposed tax savings changes.
“There is much to celebrate in the Ohio Senate’s tax package," Hederman said. "By using part of Ohio’s robust budget surplus to lower all tax rates and eliminate two tax brackets – moving Ohio closer to a flat tax – and by reducing the commercial activities tax, an idea championed by the Buckeye Institute, the Ohio Senate has wisely proposed to enact tax policy that will promote economic growth and encourage more investment in the Buckeye State,” Hederman said.
Others argue the cuts come at the expense of public education, eliminates a House and DeWine proposal to increase child care availability for an additional 15,000 children, and a provision that would have expanded Medicaid coverage to 300% of the poverty level during pregnancy and for children under age 19. It also would end continuous coverage for newborns, infants and toddlers.
“The Senate majority’s proposal shows us who they are willing to sacrifice to pay for these cuts: children, families, pregnant people and working parents, public school teachers and communities and any Ohioans who can’t afford their own lobbyists,” Hannah Halbert, executive director of Policy Matters Ohio, said.
