Property Tax Debate Intensifies as Ballot Campaign and Legislative Response Take Shape |
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Ohio’s property tax debate continues to escalate, as a statewide ballot campaign to eliminate the tax altogether gains traction, and a broad coalition mobilizes to oppose it. The Committee to Abolish Ohio’s Property Taxes is working to place a constitutional amendment on the November ballot that would eliminate all property taxes statewide. To qualify, the campaign must submit at least 413,487 valid signatures from at least half of Ohio’s counties by July 1, though the total to be filed must significantly higher to account for invalid signatures. Committee leaders are expected to give an update on their progress this week. At the same time, a newly formed coalition – Ohioans to Protect Public Services – has launched a public education campaign highlighting the potential impacts of eliminating property taxes without a replacement revenue plan. The coalition includes more than 65 organizations representing public safety personnel, emergency services, educators, developmental disabilities, mental health and addiction, public health, business and labor groups, and local elected officials from both parties. Coalition leaders point to the central role property taxes play in Ohio’s fiscal structure: - Property taxes generate more than $21 billion annually and account for roughly two-thirds of all local tax revenue.
- These funds support voter-approved levies that finance core services such as police, fire, EMS, schools, libraries, parks, and infrastructure.
Opponents of the proposed amendment warn that eliminating the tax could result in significant service reductions or require major increases in other taxes. Estimates circulating among stakeholders suggest that tens of thousands of public-sector jobs—including first responders and educators—could be at risk. Others have raised concerns that replacing the lost revenue could necessitate substantial increases in sales or income taxes at the state level. State budget officials have similarly cautioned about the scale of the challenge, noting that replacing property tax revenue could require tens of billions of dollars annually, representing a significant restructuring of Ohio’s overall tax system. Meanwhile, the Ohio legislature has already approved a package of bills designed to deliver more targeted tax relief. Rather than pursuing wholesale elimination, the General Assembly focused on reforms including changes to modify the 20-mill floor calculation, limit the growth of inside millage, and expanding the authority of county budget commissions. Supporters of those changes estimate they could generate approximately $1.7 billion in taxpayer savings over time. |
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 The push to abolish property taxes has become the focal point of Ohio’s tax policy debate, amplifying public frustration over rising tax bills while forcing policymakers to confront the tradeoffs inherent in large-scale tax reform. The trajectory of the signature campaign—and the public response to it—will play a decisive role in determining whether Ohio pursues structural tax change or continues along a more incremental reform path heading into the November election. |
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Uncertainty Persists Over Nursing Home Repayments |
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More than seven months after the Ohio Supreme Court ordered the state to repay nursing homes for underfunded quality incentive payments, key questions remain unresolved, leaving providers and policymakers facing continued fiscal uncertainty. While early estimates suggested costs could exceed $1 billion, the state’s actual obligation is expected to be significantly lower. That initial figure included federal Medicaid matching funds, meaning the state's share could be closer to $350 million. Legislative changes have also reduced the repayment period to roughly one biennium plus nine months, further lowering potential liability. Despite this, the Ohio Department of Medicaid has not finalized the amount owed or provided a timeline for payment. Providers say the delay is creating financial strain, particularly for facilities that made staffing and operational investments based on expected incentive payments. Uncertainty also remains around how the state will fund the repayments. The current budget does not include appropriations at the level affirmed by the Court, and officials suggest a resolution will require coordination between the administration and the Legislature. |
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 The unresolved repayment underscores the fiscal and policy challenges created when court decisions outpace the budget process. Until the state determines both the amount owed and a payment mechanism, uncertainty will continue for providers and policymakers alike—raising broader questions about how Ohio will manage similar obligations going forward. |
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| Rural Health Transformation Funding Approved |
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With the Ohio Controlling Board approving funding for the Rural Health Transformation (RHT) Program, the state is moving rapidly to issue grant opportunities for rural providers and partners. The Board approved more than $200 million in federal funding for the first year alone to strengthen rural healthcare systems across Ohio. The funding will be deployed across multiple targeted initiatives, including: - $92 million for Rural Health Innovation Hubs and clinically integrated networks
- $25 million to expand the OhioSEE vision care program in rural areas
- $21.2 million for school-based health centers
- $12.5 million for workforce pipeline and development efforts
- $12 million for emergency care and EMS transformation
- Additional investments in maternal health, equipment, and implementation support
These investments are designed to address mounting pressures on rural healthcare systems, including workforce shortages, hospital financial instability, and gaps in access to services such as maternity care. With funding now authorized, the Ohio Department of Health is moving quickly to implementation. Requests for Proposals (RFPs) and grant solicitations are anticipated on an accelerated timeline, creating a near-term opportunity for hospitals, providers, and community partners to compete for funding. |
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 The scale and structure of the RHT Program signal a shift toward system-level transformation rather than short-term stabilization. With multiple funding streams and a compressed rollout timeline, organizations that are prepared with defined projects and partnerships will be best positioned to secure funding as opportunities are released. |
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Ohio Unemployment Rate 4.2%, Strong Tax Revenue Above Estimates |
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Ohio's unemployment rate fell to 4.2% in February, dropping below the national average of 4.4%, but labor force participation held flat at 62.2%, still below pre-pandemic levels. According to the Ohio Department of Job and Family Services, unemployed Ohioans decreased from 255,000 in January to 251,000 in February. Losses were driven by: - State and local government: -4,100
- Professional and business services: -1,300
- Leisure and hospitality: -1,200
- Private educational and health services: -800
The flat jobs picture contrasts with a strong revenue report. The Office of Budget and Management's April Monthly Financial Report shows year-to-date GRF tax receipts at $820.1 million (3.8%) above estimate and $1.2 billion above FY 2025, led by personal income tax and non-auto sales tax. |
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 Strong revenues give lawmakers room to maneuver, but slow private-sector job growth and a stagnant participation rate will shape the conversation on tax policy, workforce incentives, and federal funding backfill. Clients with stakes in workforce development, Medicaid, or education funding should begin positioning now, before lame-duck legislation takes off after the general election in November.
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Access our curated list of federal grants, including the NSF Integrated Data Systems & Services (up to $30 million) and USDA Specialty Crop Research Initiative (up to $10 million). Review the list of ongoing grant opportunities, click the link below. |
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