NE Ohio Times

State Representative Steve Demetriou announced that the Ohio House of Representatives has approved the conference committee report for Am. Sub. House Bill 96, which outlines the State Operating Budget. The budget allocates funding for state programs and operations over the next two years, including provisions for property tax relief, a flat tax rate, and increased funding for school districts.

“With this budget, we delivered what the voters asked for,” Demetriou stated. “We have successfully balanced increased funding for education while providing much-needed property tax relief for our taxpayers in addition to increasing government accountability and protections for children online.”

The budget introduces measures to provide significant property tax relief starting January 2026 by redistributing unspent school funds exceeding 40% of their general budgets back to taxpayers. This move is expected to save Ohioans over $2.5 billion in property taxes.

In addition to direct relief, structural changes are proposed to improve transparency and control over local property tax rates. The bill allows county commissioners to offer a 2.5% owner-occupancy tax credit and a permissive homestead exemption.

Republicans continue efforts to reduce state income tax with a phased approach lowering the top bracket from 3.5% to 3.125% in 2025 and further down to 2.75% in 2026, moving towards a flat tax system.

The budget also increases funding by nearly $700 million more than FY25 for public schools under the Cupp-Patterson funding model's final phase.

House Bill 96 includes investments in various state initiatives such as Brownfield Remediation and housing programs while establishing new programs like Child Care Choice with $100 million allocated to help families afford child care services.

School choice is supported through increased awards for Autism Scholarship and Jon Peterson Special Needs Scholarships, alongside an education savings account option for non-chartered non-public school attendees.

Public safety sees investment with $65 million allocated over two years for law enforcement training, among other supports.

Higher education benefits from investments in scholarships like the Governor’s Merit Scholarship and Choose Ohio First Scholarship with a focus on workforce readiness.

Efforts toward healthcare transparency include new reporting requirements and audits on Medicaid spending.

The budget emphasizes conservative values with provisions affecting gender recognition policies, SNAP program exclusions, gaming expansions, library materials access restrictions, affirmative action requirements reduction, Medicaid fund use limitations related to DEI programs, abortion statistics reporting expansion, flag display regulations at state agencies, and youth shelter fund distribution criteria based on social gender transition promotion policies.

House Bill 96 now awaits consideration by the Governor.