St. Sen. LaRose Announces Historic Tax Cut, Largest Investment in Public Education in a Decade

Release:

COLUMBUS– Senator Frank LaRose (R– Copley) today announced the passage of House Bill 59, the state’s two-year operating budget. The bill contains as its cornerstones one of the largest single-year tax cuts in Ohio’s history as well as the largest legislative investment in public education in more than 10 years.

“Our state economy is finally moving in the right direction - in fact we currently lead the nation in job creation. By working together we’ve come a long way in the last two years, but there’s more work to do. We must keep Ohio moving in the right direction and this budget does just that.” said LaRose. “Today we passed a budget that allows hard working Ohioans to keep more of what they earned, with perhaps that largest tax cut in state history; invests in our future by providing the largest increase to K-12 public education funding in more than a decade; and fully funds the Clean Ohio program to preserve and protect Ohio’s precious parks and natural environment. All of this is much more accomplished while providing a responsible and balanced budget to efficiently fund Ohio’s essential government operations. As with any human endeavor, no piece of legislation is perfect; certainly there are areas where I would have preferred a different approach. That said, this budget is the product of more than six months of collaborative hard work, reflecting the diverse voices of this great state. I was proud to support this budget today so that together we can continue to grow our state and keep our Ohio moving in the right direction.”

The bill authorizes $2.7 billion in tax cuts, which includes a 10 percent income tax cut over the next three years. The bill also delivers much-needed tax relief for Ohio’s small businesses through a 50 percent cut on the first $250,000 of net business income. Small businesses comprise 98 percent of the state’s employers and employ approximately 47 percent of all Ohioans.

In addition to enacting tax relief that is vital in keeping our economy healthy and growing, the bill also works to modernize and streamline the state’s outdated and complicated tax code and establish a fairer and more comprehensible system that promotes job growth. To do this, the bill eliminates many exemptions, credits and loopholes. The plan works to shift the state away from its current reliance on income taxes toward a structure that relies more heavily on consumption taxes.

The proposal, which will become law with the Governor’s signature, also contains a $717 million increase in spending on primary and secondary education, the largest legislative investment in public schools in more than a decade. The bill also includes $250 million for the newly created “Straight-A Fund,” which provides grants to promote innovation in our schools and efficiency in district operations and more than $78 million to support important early childhood education programs.

The higher education plan instituted by House Bill 59 is a model for the nation that focuses on graduation and degree completion, not simply student enrollment. The plan also serves Ohio’s rising student population by establishing a 2% cap on tuition increases at all of Ohio’s public universities. Over the past 5 years, Ohio has had the second lowest tuition increases for public universities.

Additional Provisions Include:

Local Governments: Distributes an estimated $27.6 billion in state aid to local governments and school districts over the next two years. 85% of dollars collected by the state are passed along to local schools, governments, and community programs.

Reforming Workers Compensation: Reduces BWC payments by 2% for private employers and 4% for public employers as responsible management has created stable fund balances. The bureau will also be empowered to reform its payment system to save Ohio employers $900 million.

Investing in Our Workforce: Provides $1 million to train workers in the bioscience manufacturing industry by partnering with community colleges. An additional $2 million will be appropriated to create training programs that will prepare Ohio workers for growing jobs in the oil & natural gas industry.

Supporting Wellness & Safety:

Drug & Alcohol Treatment: Invests $100 million in drug and alcohol treatment, and mental health services, including a $5 million pilot project to deal with convicts’ drug addictions after release from prison in an effort to slow recidivism rates and drug use simultaneously.

Developmentally Disabled: Provides $5.4 million for home healthcare services for developmentally disabled Ohioans.

Other Important Programs:

TourismOhio: Increases funding by 14%, making $8 million available each year to support and grow the state’s tourism industry.

Hispanic & Latino Affairs: Invests an additional 19% in fiscal year 2015 to help serve Ohio’s fastest-growing demographic population.

Human Trafficking: Transfers more than $500,000 to the Highway Patrol for equipment to scan commercial trucks to better detect trafficking victims.

UPDATE: Additional quotes:

“This budget is the second chapter in a story about Ohio’s recovery. The last budget put us on track and this budget continues that progress and keeps us moving forward,” said Faber. “This is a budget about every Ohioan and giving every Ohioan the opportunity to succeed. Our focus in the legislature has been creating an environment where the economy can grow, we can create jobs, and we can educate our workforce. This budget prioritizes Ohio’s resources to do just that.”

“This budget is all about increasing opportunity, growing our economy, and making sure that all Ohioans are able to find work,” said Finance Chairman Scott Oelslager (R–North Canton). “Our plan gives a 50% tax cut for our small businesses to boost job creation and a 10% income tax cut for all Ohioans so that everyone can keep more of their hard earned money.”