On Wednesday (4/26), the Ohio House of Representatives passed the state operating budget for fiscal year 2024 and 2025. It passed 78-19 (17 republican no votes and 2 democrat no votes). To be clear, the budget is not state law until it passes the House, the Senate, reconciled in Conference Committee, and signed by the Governor. While this is a notable moment to see where we are, the work is far from over!
While legal experts and policy nerds (like myself) are still diving into the budget, here are some notable highlights.
Educate to End Hunger
Updates to school funding inputs.
The Governor’s proposal assumed 2018 numbers and expenses, as it continued to 6 year phase-in of the Fair School Funding Plan (Cupp-Patterson). The House updated those inputs into the Fair School Funding formula to represent 2022 inputs. This increases foundation funding for Ohio’s schools by over $1 billion over the next two years!Minimum teacher salary will be $40,000 instead of $30,000.
Medicaid in Schools:
Budget modernizes and invests to allow Medicaid services to be offered through our schools to eligible students.
Feed People Today:
Invests in Ohio’s Food banks.
The Governor proposed flat-funding Ohio’s food banks at $25 million a year. The House increases that to $40 million a year. However, to meet rising demand we ask the Senate to increase the funding level to $50 million a year. Cleveland food bank also received an additional allocation for $10 million.Creates a state investment to expand free meals in Ohio’s schools for low-income students.
Next step: Protect this investment and build on it in the Ohio Senate.
Healthy Homes and Communities
Increases wages for the direct care workforce to at least $17 an hour.
The Governor proposed $16, advocates requested $20. The $17 will rise the second year of the budget to $18.
Offers continuous Medicaid Coverage for kids 0-3 years old.
This will reduce paperwork, gaps in service, and children without healthcare.Affordable Housing and Low-Income Housing Tax Credit
Authorizes a nonrefundable state tax credit that piggybacks on the federal low-income housing tax credit for affordable housing projects. This offers an increased investment in low-income homes that will expand affordable housing access in Ohio.Authorizes Trust Fund Dollars to be used for Housing
Ohio collects funding for the Ohio Housing Trust Fund, however in past years not all of it went to housing services because of an arbitrary cap.
Builds an Economy that works for All!
Maintains the Governor’s expansion of publicly funded childcare eligibility up from 142% of the Federal Poverty Level (FPL) to 160% of the FPL.
Knowing childcare is a major barrier to employment stability, advocates requested an increase to 200% of FPL for eligibility, however this increase will help 15,000 additional children access childcare.Cuts $150 million from infant childcare and childcare scholarships.
The Governor proposed using the American Rescue Plan Act (ARPA) dollars to help families access childcare, and the House removed it.
Provides a tax cut that still benefits the wealthiest Ohioans.
The elimination of a tax bracket is a step in the wrong direction, however eliminating the 2nd lowest bracket is less bad than eliminating the top bracket. This will cost our schools and anti-poverty programs about $400 million a year.Expands voucher eligibility to 450% of the Federal Poverty Level.
This will subsidize wealthy kids who already can afford private school by diverting public dollars that could have been used to expand school meals or meet other community needs.
This is just a quick snapshot of some of the issues we care about, but as further analysis and research occurs this page will be updated!