Budget bill includes school funding reform

Staff and submitted information

COLUMBUS — State Representative Craig S. Riedel (R-Defiance) announced the Ohio House has approved House Bill 110, the state’s two-year operating budget that creates a new school funding plan and provides tax relief to Ohioans. 

The Fair School Funding Plan is a historic initiative that is the result of collaboration among educators and policymakers for the past three years. The plan begins a six-year phase-in, starting with the 2021-2022 school year and is designed to ensure a hold harmless period during the transition to the new formula.

“I’m proud to support a fix to Ohio’s school funding formula,” said Riedel. “This new model is predictable, sustainable, and transparent while ensuring fairness to all of Ohio’s schools.”

The budget includes a two percent across the board personal income tax cut, which will reduce taxes and withholding amounts by approximately $380 million over the biennium. 

“Although I would have preferred providing more tax relief in this budget, I’m grateful the House took a step forward in alleviating the tax burden on hardworking Ohioans,” added Riedel. 

Other measures to support job retention and creation, workforce training, and economic development efforts in Ohio include:

• Requiring state agencies to give a preference to American and Ohio products through a competitive bidding process
• Creating a 13-member joint legislative committee to study career pathways and workforce training
• Providing $18 million to the Rural Industrial Park Loan Program to support rural job creation efforts
• Providing $500,000 in grants to the Main Street Job Recovery Program 
• Establishing the Commercial Truck Drive Student Aid Program to address the national driver shortage 
• Vacating violations of orders by businesses for COVID-19
• Appropriating $155 million for COVID-19 relief grants to support industries negatively impacted by the COVID-19 pandemic

H.B. 110 now heads to the Senate for consideration.