Ohio General Assembly Sends Budget to the Governor's Desk
COLUMBUS – The Ohio House and Senate concurred on the House Bill 96 (Stewart) conference report, sending the State’s main operating budget to Governor Mike DeWine’s desk, announced State Representative Jamie Callender (R-Concord). The Ohio House concurred by a vote of 59-38 with the Senate concurring by a vote of 23-10. The concurrence on House Bill 96 comes after 6 months of hearings, debate, and amendments in both chambers of the General Assembly over the state’s $200 billion biennial budget.
While initially introduced by the Governor at $102 billion in fiscal year FY’26 and $104 billion in FY ’27, the House’s budget proposal totaled $100 billion in FY ’26 and $102 billion in FY ’27 while the Senate’s budget proposal totaled $99.9 billion in FY’26 and $101 Billion in FY’27. The final version of the budget sent to the Governor’s desk totals $99.5 billion in FY ’26 and $101 billion in FY’27 across all fund groups, with $45.6 billion in FY’26 and $46 billion in FY’27 coming from the State’s General Revenue Fund.
Among the provisions of the final budget is the consolidation of Ohio’s two income tax brackets into a single flat tax rate of 2.75%. This will be accomplished with a stepdown in FY’26, reducing the top tax rate to 3.125% from 3.5% and the final rate of 2.75% effective in FY’27. This is estimated to save Ohioans $529 million in FY’26 and $1.146 billion in FY’27.
In addition to the income tax reduction, House Bill 96 includes property tax relief for Ohioans by empowering county leaders to take direct action and enhancing local control over property taxes. House Bill 96 allows the Board of County Commissioners to provide a local owner-occupancy tax credit of up to 2.5% and a local homestead exemption for those who qualify for the state’s homestead exemption. It also empowers local budget commissions to lower the property taxes of a school district if they carry over more than 40% of their annual operating costs year to year. In FY’24, four Lake County schools carried over more then 40% of their operating expenditures, Riverside Local School District (47.6%), Mentor Exempted Village School District (48.1%), Kirtland Local School District (59.2%), and Fairport Harbor Exempt Village School District (81.9%).
Also included in the budget are several permanent law changes aimed at containing the growth of government regulation in Ohio. House Bill 96 expands the powers of the Joint Committee on Agency Rule Review (JCARR), which Representative Callender has served as chair during all 8 of his terms in the legislature, by providing additional scrutiny for rules promulgated by agencies with a fiscal impact for enforcement or compliance greater than $100,000 per entity or a $1 million in cumulative compliance costs across Ohio. House Bill 96 also strengthens the provision of Senate Bill 1 (McColley/Roegner 133rd General Assembly) by tightening up the definition of regulatory restrictions, delivering tangible cuts to red tape while preventing wordsmithing.
The amendments removed in the Senate but Representative Callender was successful in restoring during conference committee that directly impact Lake County include $1 million across the biennium for the Alliance for Working Together (AWT) Foundation’s STEAM to Career program which aims to expose students to modern manufacturing and give them the skills to find a good paying job at one of the manufacturing companies found in Lake County and across the region. Additionally restored is $15,000 for the Village of Grand River, to make much needed sidewalk repairs across the village.
“On behalf of our Board, Leadership, and the students that we serve, once again, Representative Callender’s leadership in recognizing the ongoing need to attract young and adult learners into the fields of STEM and manufacturing careers,” said Teresa Simons, Executive Director at the AWT Foundation. “As we approach a generational shift in our workforce in Northeast Ohio, commitments like his are more critical than ever.”
“The Village of Grand River expresses its sincere gratitude to the Ohio General Assembly for approving a budget that includes vital funding for our community,” said Mary Mervar, President of Grand River Village Council. “A special thanks to Representative Callender for being as excited as we are about the potential for Grand River. This funding is a huge first step to giving our community a well-deserved facelift.”
In addition to the amendments that directly impact Lake County, several House amendments that impact greater Cleveland and Northeast Ohio were restored in conference committee, including $600,000 in FY’26 for the Foundry Row, Sail, Dream program, $100,000 in each fiscal year, to support the Applewood Centers foster care program, $500,000 in FY’26 for Newbridge Cleveland’s center for arts and technology, to support at-risk adult learners enter the healthcare profession, and $500,00 in FY’26 for Birthing Beautiful Communities, to support at-risk mothers and children in Northeast Ohio.
“The Row Sail Dream program by The Foundry is doing incredible work making rowing and sailing accessible to Cleveland’s youth, especially those who historically did not have access to our waters,” said Gina Trebilcock, Executive Director of the Foundry. “By removing financial and experiential barriers, the program connects students with Lake Erie and the Cuyahoga River while also building skills like teamwork, perseverance, and communication. Representative Jamie Callender’s support through Ohio’s operating budget has helped secure vital funding for initiatives like this, reinforcing the importance of outdoor education and community engagement.”
“We are grateful to Representative Callender and his colleagues in the General Assembly for their support of at-risk adult learners who fill critical demand jobs in our healthcare industry in northeast Ohio” said Bethany Friedlander, CEO of NewBridge Cleveland.
“Birthing Beautiful Communities and the families we serve could not be more appreciative for Representative Callender’s and his colleagues ongoing focus on combating Ohio’s HIGH rates of infant and maternal mortality,” said Jazmin Long, President and CEO of Birthing Beautiful Communities. “Progress is being made through these efforts.”
“Through regulatory reduction, the creation of a flat income tax, and real property tax relief this budget makes meaningful impacts on the lives of Ohioans,” said Callender. “While every budget is a series of tradeoffs and compromises, House Bill 96 strikes a balance between fiscal responsibility and investing in ensuring Ohio remains the best place to work, live, and raise a family.”
The Governor now has 10 days, not counting Sundays, to review the legislation and sign or veto the legislation.