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Yahoo
13-06-2025
- Business
- Yahoo
Child care programs take hits in Ohio Senate budget, even a Republican-supported one
Ohio Senate President Rob McColley, R-Napoleon, speaks at the Ohio Senate Republican Budget Press Conference. Sen. Jerry Cirino, R-Kirtland, the chair of the Senate Finance Committee, stands in the background. (Photo by Morgan Trau, WEWS.) The Ohio Senate-approved budget keeps eligibility for state-supported child care at levels that state leaders and advocates say is one of the worst in the country, and eliminates a cost-sharing model for child care that was supported by Republicans in both chambers. Eligibility for Publicly Funded Child Care wasn't increased in the Ohio Senate proposal as advocates had urged, maintaining the state eligibility of 145% of the federal poverty level. That level leaves Ohio at what Ohio Department of Children and Youth Director Kara Wente, along with advocates like Policy Matters Ohio, said was one of the lowest eligibility levels in the country. To even get to the middle of rankings on child care eligibility, Heather Smith, a researcher with Policy Matters Ohio, said the state would need to jump their eligibility level to 225%, far above what advocates requested, which was an increase to 160%. One thing that made it to the Senate proposal at the urging of advocates was a provision that calculates payments for Publicly Funded Child Care based on enrollment numbers rather than attendance. Child care workers and leaders said the method would create more consistency in payments and would be 'critical' for parents and providers. The budget eliminates a Republican-supported measure added in the House version called the Child Care Cred Program, which would create a cost-sharing model for child care, in which employers, eligible employees, and the state all pay a portion of the cost of child care. In the most recent discussions on the model, the state would pay 20%, and employers and employees would put in 40% each. The measure came from bills in both chambers of the Ohio legislature, the GOP sponsors of which pushed the model as a way to address a state child care sector that has long been considered inaccessible, unaffordable, and without the adequate (and adequately paid) workforce to stand up to the demand. Policy Matters actually supported taking the model out of the budget, citing 'lackluster results' from comparable programs in other states. Smith said the funding 'would have a greater impact' if it was directed toward Ohio Senate Bill 177, a GOP-led bill that would create a pilot program to allow child care staff members to have Publicly Funded Child Care for free. 'This program would stabilize the sector while creating an additional 6,000 to 18,000 spots in child care facilities,' according to Smith. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The Child Care Choice Voucher program, which Republican Gov. Mike DeWine praised as an important part of the state's support for parents and the child care sector, stayed in the Senate-passed budget with eligibility at 200% of the federal poverty line to receive subsidies for child care services. But the budget took out language regarding Step Up to Quality, a set of state standards for licensed child care providers, and Smith said the payment rates for the voucher program 'are not sufficient for providers.' The voucher program would receive $25 million less over the next two years than was proposed in DeWine's executive budget. While he asked for $75 million in 2026 and $150 million in 2027, the Senate kept the House's amounts, at $100 million in each fiscal year. Early childhood education advocacy group Groundwork Ohio said the Senate proposal 'fails to meet the moment.' 'Ohio families are doing everything right,' said Lynanne Gutierrez, president and CEO of Groundwork Ohio, in testimony to the Senate Finance Committee before the proposal was passed. 'They're working hard, raising kids and keeping our economy moving. They deserve a budget that recognizes their contribution and meets them with the support they need.' Gutierrez and Groundwork pushed for restoration of the Child Tax Credit as well, which would have provided up to $1,000 per child ages 0 to 6. The credit had the support of state organizations and individuals, along with economic experts who said the credit would boost the state's financial health. Republican legislative leaders pushed back on the tax credit, partly because the money for the credit would have come from tobacco taxes, which legislative leaders said was a fading source of revenue. A Child Care Recruitment and Mentorship Grant Program was kept from the House provision, to 'help increase the number of licensed child care providers in Ohio and to assist recited entities and individuals.' The budget proposal includes $1.75 million in fiscal year 2026 and $1 million in 2027 for the program. Another grant program that survived to the Senate budget was the Early Childhood Education Grant Program, to 'support and invest in Ohio's early learning and development programs,' including licensed child care centers, licensed family child care homes and licensed preschools. The Ohio House and Ohio Senate are now working in closed-door discussions to combine their two versions into a final budget draft, set to be sent to the governor for signature, and possible line-item vetoes, by July 1. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
05-06-2025
- Business
- Yahoo
Ohio Senate GOP moves to give wealthiest Ohioans tax cut
Senate President Rob McColley, R-Napoleon, speaks at the Ohio Senate Republican Budget Press Conference. Sen. Jerry Cirino, R-Kirtland, the chair of the Senate Finance Committee, stands in the background. Photo: Morgan Trau, WEWS Ohio Republican senators have proposed a flat income tax for the state's top earners, which would result in a projected $1 billion loss in the general revenue fund. Bailey Williams is like the average Ohioan — earning less than six figures a year. According to census data, the median income in the state is about $68,000. He's worried about the Senate's newly proposed state budget. 'The services that made me who I am today, public education made me who I am today. I worry about those opportunities being there for my younger siblings,' Williams said. He is also a researcher with the nonpartisan organization Policy Matters Ohio and is evaluating a budget provision — one that creates a flat income tax of 2.75%. There are three income tax brackets in Ohio. Those making up to $26,000 do not need to pay state income tax. Ohioans earning between $26,000 and $100,000 pay a tax of 2.75%. Those making more than $100,000 have to pay 3.5%. Senate President Rob McColley (R-Napoleon) said that the highest earners in the state will have their income tax payment reduced to 2.75%. 'Every tax cut we do in the future will involve every single person equally, on a percentage basis,' McColley said. State data reveals that this could result in a loss of about $1.1 billion in the General Revenue Fund. How would Ohio make up the deficit from the tax? 'One of two ways,' Williams said. 'We're going to see increases in regressive taxes, most likely the sales tax, or we have to make do with less — less government services.' Many cuts for programs that benefit lower-income families have already been proposed in the budget. Funding for schools, Medicaid, libraries, lead abatement, food banks and child care face funding decreases from the current status or from the governor's budget. When McColley was asked how he defends cuts to Medicaid, lead poisoning prevention and child care while allowing a lower tax rate for wealthier Ohioans, he said the 'growth in Medicaid spending has been exponential.' According to the Legislative Service Commission, a nonpartisan agency that works with the legislature, the proposed budget would result in a 4% decrease in spending, with billions of dollars in cuts. He said that there was already an 'awful lot' of lead program funding and said that they were keeping child care the same as before. However, the budget would cut the governor's proposal of offering Publicly Funded Child Care to families earning up to 160% of the federal poverty level, keeping it at the current 145% threshold. 'No multimillionaire needs a $10,000 tax cut bankrolled by cutting lead abatement or Medicaid,' Williams said. McColley said the elimination of 11% of the state's income tax revenue would not actually impact funding because he predicts companies will move to Ohio to take advantage of that lower tax rate. 'A lower tax burden has had a positive economic development and brought more jobs to the state,' McColley said. 'It's brought more investment in the state.' The budget will continue to be heard, and a final version will need to be agreed upon by the Senate and House by the end of June. Click here to learn more about the House's passed budget. Follow WEWS statehouse reporter Morgan Trau on Twitter and Facebook. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
03-06-2025
- Business
- Yahoo
Ohio Senate GOP budget increases school funding, gives Browns $600M grant, creates flat tax
Senate President Rob McColley, R-Napoleon, speaks at the Ohio Senate Republican Budget Press Conference. Sen. Jerry Cirino, R-Kirtland, the chair of the Senate Finance Committee, stands in the background. Photo: Morgan Trau, WEWS The Ohio Senate has announced its version of the state budget, one that provides a slight increase in public school funding, gives a $600 million grant to the Cleveland Browns for their new stadium and creates a flat income tax of 2.75%. Senate President Rob McColley (R-Napoleon) and Finance Chair Jerry Cirino (R-Kirtland) announced their proposed amendments to the state's biennial operating budget on Tuesday afternoon. House Bill 96, the number for the House's budget bill, passed in April. The senators increased the amount of money going to public schools compared to the House's proposal. The Senate budget gives public schools about $100 million more than the House. Although it follows most of the House's proposed budget – which only gives schools about $226 million for school funding, or $550 million total – the Senate changed the funding 'guarantee' amount. Right now, some districts have guarantees that a portion of their funding will not be reduced, even if their enrollment goes down. However, to be fully funded, based on statistics from the Fair School Funding Plan from 2021, schools would need an additional $666-800 million, compared to the $226 million given by the House. They also raised the House proposal's cap on districts' rainy day funds to 50%, instead of 30%. This would mean that the schools would have to refund anything above that back to the taxpayer in a method legislators want to use to provide property tax relief. The Senate's budget proposal still includes $600 million for a new Cleveland Browns stadium in Brook Park. However, the funding structure differs from what the Browns proposed and what the House approved earlier this year. The House proposed borrowing $600 million by issuing bonds and repaying the debt, with interest, over 25 years, at a cost of about $1 billion. The Senate is proposing a $600 million grant for the stadium using unclaimed funds. That money is property of Ohioans held by the state, things like forgotten bank accounts, rent or utility deposits or uncashed insurance policies. The Ohio Department of Commerce's website says the state is sitting on $4.8 billion in unclaimed funds. The Senate believes the state will more than recoup that investment through sales tax, income tax and commercial activity tax revenues from the 176-acre Brook Park stadium district. The budget also includes a 2.75% flat income tax. This mirrors a bill currently in the House, which would eliminate the separate brackets of the non-business income tax. People making more than $102,400 would have their taxes reduced from 3.5% to 3.125% in 2025 and then down to 2.75% in 2026. The lower bracket would stay at 2.75%. Now, the Senate and House leaders will enter a conference committee, a closed-door negotiation period to create a final budget. Once a decision is made, both chambers must pass the combined bill. If it passes through both sides, it will be sent to Gov. Mike DeWine for review. In the past, he issued dozens of line-item vetoes on operating budgets. Line-item vetoing is the ability for the governor to pick and choose which policies within a larger piece of legislation get to stay or must go. DeWine is adamantly against giving the bond package to the Browns, and we have asked repeatedly if he plans to veto it. He says he hopes it doesn't get to that point. The budget must be passed by the end of June. This is a developing story and will be updated. Follow WEWS statehouse reporter Morgan Trau on Twitter and Facebook. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
