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Lowest-growth
budget in 40 years sets path for economic growth
through tax reforms and controlled spending
State
government's new two-year budget was signed by
Governor Taft on June 30, 2005 in time for it to go
into effect the next day.
Top features
and highlights include:
“Starting tomorrow
we’ll have a powerful new tool to market Ohio’s
economy,” Taft said as he signed the budget bill.
“This historic tax reform plan creates a new
business climate that will generate jobs, grow our
tax base to support education and all public
services and allow Ohio workers to support their
family and their community.”
As enacted by H.B.
66, the tax reform plan will:
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Cut personal
income tax by 21 percent across-the-board over
five years
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Cut the sales tax
to 5.5 percent, effective July 1, 2005
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Phase out the
corporate franchise tax over five years
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Phase out the
tangible personal property tax over four years –
new machinery/equipment purchases exempt
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Phase in new
broad-based, low-rate commercial activities tax
(0.26 percent) on business receipts in Ohio;
exempt first $1 million in sales to protect small
businesses
In addition to
reforming Ohio’s tax code, the budget signed today
increases educational opportunities in Ohio, holds
the line on Medicaid spending, expands choice of
care options for seniors and increases efficiencies
in state government.
Education
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Increases overall
state funding for schools by more than $270
million over the biennium
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Implements the
Building Blocks model of school funding to better
direct funding to address critical needs within
districts
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Establishes the
Ohio Educational Choice Scholarship Pilot Program
to give additional choice to students in
persistently failing schools
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Increases funding
for higher education by more than $100 million
over the biennium
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Implements the
Ohio College Opportunity Grant which raises the
family income cap for college grants from $39,000
to $75,000 and reaches an additional 11,000
students
Medicaid reform
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Incorporates
recommendations from the Commission to Reform
Medicaid
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Replaces the
cost-based nursing facility formula with a new
price-based formula
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Takes ambitious
steps toward a system of managed care in Ohio
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Establishes a
study to review the best ways for Medicaid to be
administered in the future
Seniors
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Enables more
seniors to receive care in their own homes through
the PASSPORT program
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Establishes a
pilot project to provide assisted living to 1,800
seniors who would otherwise have to move into a
nursing home
Efficiency in government
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Merges the Ohio
Office of Criminal Justice Services into the Ohio
Department of Public Safety
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Merges the Ohio
SchoolNET Commission and the Ohio Educational
Telecommunications Network to form ETech Ohio in
order to bring technology-based learning
opportunities to more students
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Consolidates 20 of
the state’s 27 regulatory boards that set license
and registration standards for professions and
occupations
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Flat funds or
decreases funding to two thirds of GRF funded
state agencies
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