The fate of Ohio’s next two-year budget is now up to Gov. John Kasich.
The House and Senate each voted Thursday to send to the governor a final version of House Bill 59 that includes a sales tax boost, an income tax cut and a trio of contentious anti-abortion provisions that have become a focal point in the debate over the Republican-controlled legislature’s nearly $62 billion plan.
The House passed HB 59 by a vote of 53 to 44, and the Senate passed the legislation 21 to 11, sending the hefty bill to the Republican governor for a signature by the Sunday deadline.
The budget would bump up the state’s sales tax from 5.5 percent to 5.75 percent and give Ohioans a phased-in 10 percent reduction in income taxes.
HB 59 would also slash in half taxes on the first $250,000 of yearly net income for small-business owners who claim business income on personal tax filings.
Republican supporters of the budget say it will grow the state’s economy and put more Ohioans to work.
Democrats argue that HB 59 disproportionately benefits the wealthy.
The plan, which many abortion-rights advocates call the “abortion budget,” includes measures that would strip funds from Planned Parenthood, ban abortion providers from entering into transfer agreements with public hospitals and require women seeking abortions to undergo ultrasounds.
All Democrats in both chambers voted against HB 59, with some GOP members joining them.
Republican Reps. Kristina Roegner, Ron Young, John Adams, Matt Lynch, Ross McGregor, Ron Hood and John Becker stood against the legislation. Republican Sen. Kris Jordan also voted no.
“My problem is too much spending,” said Becker, of Southwest Ohio. “I can’t stomach the increase in spending. Some of my colleagues who voted no were concerned with the taxes.”
A Plain Dealer analysis of the budget’s sales and income tax changes found that most Ohioans would see a smaller annual tax bill and that those with a higher income would realize the most savings.
Additional HB 59 tax changes include eliminating the 12.5 percent property tax reduction for homeowners for any new taxes, which would make future school levies more expensive for homeowners.
The budget also includes plans to change the eligibility for the homestead exemption that seniors receive on their property taxes. Seniors who now get the exemption would continue to qualify for it, but only seniors with yearly incomes no greater than $30,000 would qualify in the future.
A spokesman for Kasich said the governor will sign the bill Sunday.
Kasich has not said what, if any, budget items he might strike out with his line-item veto.
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