Sen. Peterson praises passage of Senate budget
COLUMBUS – State Senator Bob Peterson (R-Washington Court House) today announced the Senate’s passage of the state’s two-year budget proposal with a vote of 23-10.The bill includes substantial new funding for education and more than $1.75 billion in net tax relief for hardworking Ohioans and small business owners.
“This budget makes historic investments in young Ohioans by improving the state’s K-12 school funding formula to support rural school districts and lowering the financial burden placed on Ohio’s college students and their families,” said Peterson. “We continue to build on our investments in job creation and workforce development that will help lift the standard of living for all Ohioans and their families.”
The Senate budget includes a number of amendments supported by Senator Peterson, which:
• Support Farm Families and Communities: The Senate plan restores funding for the Southern Ohio Agricultural and Community Development Foundation which provides assistance to Ohio's rural communities with economic and educational development opportunities.
• Invest in Wilmington Air Park: This amendment supports a collaborative research program in partnership with the University of Akron’s National Center of Education and Research on Corrosion and Materials Performance for the development of an FAA certified process for state-of-the-art research on Supersonic Particle Deposition at the Wilmington Air Park. This investment brings new life to the Wilmington Air Park.
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“The Senate budget creates new opportunities for all Ohioans allowing them to keep more of their hard-earned money through new tax cuts,” said Peterson. “We’re also investing in economic development initiatives that will help attract high-tech, in-demand jobs to the region.”
Among the major highlights in the bill, the Senate plan:
• Tax Cuts: Reduces Ohio’s income tax rate by 6.3 percent, returning $1.26 billion to taxpayers over the next two years, allowing Ohioans the opportunity to keep more of their hard-earned money.
• Small Business Tax Relief: Eliminates the entire state tax burden on small businesses with income up to $250,000 and creates an innovative, new 3 percent flat tax for small businesses above that income level. This allows small businesses, the backbone of Ohio's economy, the opportunity to invest back into job creation and infrastructure.
• Reduces Spending: Overall spends less than any previous state budget plan introduced this year. It also reduces proposed overall Medicaid spending by more than $1 billion, giving the state the opportunity to focus on finding efficiencies and improved patient outcomes.
• Investing in K-12: Invests more than $935 million new dollars into students and schools over the next two years ($351.5 million in FY16 and maintains that additional funding in FY17 and adds $233 million more), holds all districts harmless to FY15 funding amounts. It provides an opportunity for predictability and sustainability for school districts, driving additional dollars to low-wealth, low-capacity districts while ensuring more districts are on the funding formula. The Senate-passed version of the budget also implements various testing reform recommendations of the Senate Advisory Committee on Testing, such as reducing hours of required testing.
• Higher Ed Affordability and Support: Makes the largest state investment in SSI (state share of instruction) for higher education in eight years. The bill also gives college students and their families the opportunity for a more affordable college education by instituting a two-year freeze on tuition rate increases and requiring Ohio’s public universities and colleges to find ways to reduce student costs by five percent.
• Support for Essential Services: Restores or provides additional funding for essential services, such as pregnancy care, breast and cervical cancer screenings for women, food bank services, various health care and youth programs, all which give Ohioans opportunities to improve their lives, health and economic situation.
The budget bill will now be referred to a conference committee where the House and Senate versions will be reconciled. The Ohio Constitution requires that the budget be balanced, and, by law, the bill must be signed by the Governor by July 1.
Senator Bob Peterson represents the 17th District in the Ohio Senate, which encompasses all or part of Clinton, Fayette, Gallia, Highland, Jackson, Lawrence, Pickaway, Pike, Ross, and Vinton counties.