State Senator Susan Manchester (R-Waynesfield) and fellow lawmakers in the Ohio Senate have approved the new biennial operating budget, highlighting continued commitments to tax relief, fiscal responsibility, and investments in families, agriculture, and housing.
The $60.23 billion budget includes over $1 billion in tax relief and maintains a constitutionally required balanced structure.
Flat Income Tax and Lower Brackets
A major highlight of the budget is the gradual implementation of a flat income tax. Beginning in tax year 2025, the highest bracket will decrease from 3.5% to 3.125%, with a 2.75% flat rate taking full effect in 2026.
Ohioans earning $26,050 or less will continue to pay no state income tax.
Senator Manchester praised the move, stating the changes create a stronger foundation for the state’s long-term economic growth.
Property Tax Relief and Local Oversight
The budget addresses growing concerns from homeowners over rising property taxes.
It eliminates new emergency and replacement levies that bypass inflation controls and requires clear language for future levy requests.
County Budget Commissions will now have greater authority to review and potentially reduce financial impacts on property owners.
School districts may carry over a 40% surplus from year to year, but anything above that must be returned to taxpayers.
Last year, Ohio’s 611 districts held a collective $10.5 billion in cash reserves.
Support for Agriculture
Recognizing the importance of Ohio’s agricultural sector, the budget increases funding for H2Ohio, a program focused on protecting watersheds and supporting sustainable farming.
A continued sales tax exemption for grain bins and land tile will also benefit farmers statewide.
Investment in Housing and Childcare
To address Ohio’s housing shortage, the budget includes $100 million in investments, with $10 million supporting Residential Economic Development Districts in high-growth areas and $90 million going to rural site preparation and infrastructure.
In support of families, $20 million is allocated to the Ohio Fatherhood Commission for its Responsible Fatherhood Initiative—an effort aimed at reducing childhood poverty by encouraging parental involvement.
Childcare access also remains a priority, with over $100 million dedicated to the Choice Voucher Program for families earning up to 200% of the Federal Poverty Level.
Additionally, early childhood education funding will increase by 19%, totaling $260 million.
Reducing Bureaucracy, Growing the Economy
The new budget reflects a consistent strategy: reduce taxes and bureaucracy to encourage consumer spending and economic growth.
Lawmakers say these measures have helped generate additional state revenue while making Ohio more attractive to businesses and families alike.
Senator Manchester called the plan a “win for all Ohioans,” noting its alignment with the Senate’s long-standing goals of smart investment and conservative financial stewardship.
The budget now is in the hands of the governor, waiting for his signature, complete veto, or line vetoes.
The budget is expected to be completed by Monday.
