Ohio Senate approves $xx‑billion biennial budget, enacts flat tax and measures on schools, housing and unclaimed funds

COLUMBUS — The Ohio Senate passed amended substitute House Bill 96 on June 10, a two‑year operating budget for fiscal 2026–27 that includes a transition to a 2.75% flat individual income tax, adjustments to the Fair School Funding plan, new housing and infrastructure programs, and a plan to use a portion of long‑unclaimed funds to seed a sports and cultural facilities account. The measure passed 23–10.

The budget, presented as the Senate’s comprehensive spending and policy plan for 07/01/2025–06/30/2027, would move Ohio toward a single rate income tax that sponsors say will “put money back in taxpayers’ pockets.” Finance committee chair Senator Serino described the bill as the result of months of work and said it provides additional state aid for K‑12 education while offering tax relief and new economic development incentives.

Supporters said the package includes a near‑complete phase‑in of the Fair School Funding plan with a guarantee that no district will receive less than it did in fiscal 2021, and a new performance component and enrollment growth supplement. The bill also would give county budget commissions broader authority to reduce millage collections on voter‑approved levies in certain circumstances, impose a 50% carryover cap on school district reserves with limited exceptions, and create…