Ohio Legislature Approves $60 Billion Budget with Major Tax Cuts and Browns Stadium Funding

Ohio lawmakers have approved a sweeping $60 billion, two-year state budget, advancing it to Governor Mike DeWine for final review. The comprehensive plan flattens income taxes, outlines significant administrative spending cuts, and earmarks $600 million for a new Cleveland Browns stadium. DeWine has until Monday to sign the bill and apply any line-item vetoes.

Describing it as a "budget of abundance," Republican Sen. George Lang and fellow GOP leaders highlighted provisions such as $1 billion in income tax relief, initiatives to address Ohio's property tax crisis, and regulatory rollbacks reminiscent of the Trump administration’s efficiency efforts. They emphasized how the bill tightens agency budgets and scales back what they view as bureaucratic excess.

However, the budget passed largely along party lines, with Democrats opposing it unanimously, joined by a few Republicans. Critics argued the flat tax policy benefits high-income earners while burdening local governments and libraries. Although the budget increases education spending by nearly $3 billion over the biennium, opponents say it still underfunds the final phase of an overhaul meant to resolve Ohio’s unconstitutional school funding system.

A standout provision includes $600 million in state funds to help the Haslam Sports Group, owners of the Browns, build a new domed stadium in Brook Park, a Cleveland suburb. Initially, DeWine proposed increasing taxes on sports betting to support this and similar projects for other teams like the Bengals. Instead, the legislature chose to utilize a portion of the state’s $4.8 billion in unclaimed funds—money from sources like dormant bank accounts and uncashed checks.

From this fund, $1.7 billion will establish the Ohio Cultural and Sports Facility Performance Grant Fund, with the Browns as the first recipient. While the Cincinnati Bengals are not explicitly funded in this budget, the grant structure leaves room for future stadium-related projects. Some Democrats from the Cleveland area condemned the move as a massive handout to billionaire team owners, and legal challenges could follow if the budget is signed as is. Ohio’s Republican Attorney General has expressed confidence that such challenges would fail.

Another major feature is the adoption of a flat income tax rate of 2.75% for those earning over $26,050 annually, phased in over two years. The plan also eliminates the current 3.5% tax rate on individuals earning over $100,000 by the 2026 tax year. Should the plan go into effect, Ohio would become the 15th state with a flat tax.

Supporters argue the change simplifies taxation and promotes economic growth, aiming for the eventual elimination of state income tax altogether. However, the Institute on Taxation and Economic Policy found that 98% of the tax relief would go to the top 20% of earners—those making over $139,900 per year.

In response to rising property taxes, especially those collected by school districts, the budget prohibits new emergency or replacement levies and mandates clearer ballot language for any future levies. It also enforces a cap on district fund surpluses: anything over 40% must be spent or returned to taxpayers. Detractors argue this punishes financially responsible districts.

Echoing elements of the Trump-era Department of Government Efficiency, the budget cuts administrative agency budgets by 3% to 4%, and restructures or eliminates several oversight bodies. These include those responsible for election laws, prison oversight, public school policy, and Medicaid spending—most of which were bipartisan entities.

Despite these cuts, the budget makes notable research investments, including $7 million for quantum computing at Miami University and $5 million for childhood cancer research. Conversely, it reduces funding for tobacco prevention, housing assistance, and food banks.

A controversial trigger clause was included that would end Ohio's Medicaid expansion coverage if federal support drops below 90%. This could impact health care for more than 800,000 Ohioans, a move Democrats strongly criticized.

Another contentious section targets LGBTQ+ rights and representation. The legislation asserts as "incontrovertible reality" that there are only two sexes: male and female. It seeks to block Medicaid funds from supporting mental health services that affirm gender transitions and bars public funds for youth shelters involved in such support. It would also require libraries to hide children’s books related to sexual orientation or gender identity from public view.

Republican Rep. Gary Click, a Baptist pastor, justified the move as aligning with constituents’ values, questioning whether future budgets would need to reaffirm basic truths like "water is wet."

In a powerful rebuttal, Senate Democratic Leader Nickie Antonio, Ohio’s first openly gay legislative leader, condemned these policies as harmful and discriminatory. “These actions aren't going to erase us," she said. "We are the very fabric of every single one of your communities in every single one of your districts.”

The final version of the budget bill now awaits Governor DeWine’s signature or modification. His decisions in the coming days will determine the future direction of tax policy, education funding, public health, and civil rights across Ohio.