Ohio Senate Passes Operating Budget, Setting Stage for High-Stakes Negotiations |
|
|---|
|
 |
Last week, the Ohio Senate passed its version of the two-year operating budget (HB 96) totaling $90 billion in General Revenue Funds and $201 billion in all-funds appropriations, setting up pivotal negotiations with the House to reconcile competing visions for Ohio’s fiscal future. The June 30 deadline looms as both chambers now address differences across tax reform, school funding, Medicaid, and different proposals to fund a new stadium for the Cleveland Browns. Major Differences to be Resolved in Budget Conference Committee K–12 Education Funding - Senate: Continues implementation of Fair School Funding Plan with performance-based supplements and growth adjustments. Adds a 50% cap on carryover balances but includes mechanisms for exceeding the cap.
- House: Proposes an increase over FY25 for public schools and contains a 30% carryover cap.
Tax Policy Differences - Senate Plan: Moves to a 2.75% flat tax on income by 2026, with income under $26,050 untaxed. Republicans tout the plan as pro-growth; Democrats warn it disproportionately benefits the wealthy.
- House Plan: Retains five tax brackets with modest reductions and expands the Earned Income Tax Credit (EITC), keeping the top rate at 3.99%.
- Both versions seek to provide property tax relief, increasing the homestead exemption, eliminating certain types of levies, and increasing transparency for voters and taxing authorities.
Browns Stadium Proposals - Senate: Allocates $600 million from unclaimed property funds for a new stadium. The Senate contends these funds will be recouped in the state’s general revenue fund through incremental tax revenue generated from the stadium district.
- House: Proposes a $600 million bond package to be repaid over 25 years.
Many other issues, including differences in Medicaid, childcare funding, housing programs, brownfield remediation, workforce development, sunsetting various tax credits and exemptions, and a variety of earmarks for legislators’ favorite initiatives need to be resolved. Behind-the-scenes negotiations have already begun in earnest. Later today, the conference committee will meet to hear the latest revenue projections for the coming biennium. Once major issues have been reconciled, the committee will meet in public session to adopt a final version which will go to both the House and Senate for approval. Legislative leaders expect the final budget to be approved and sent to Governor DeWine on or around June 26. The Governor will then decide which items he will line-item veto and sign the bill into law by June 30. |
|
|---|
|
 This budget will dictate Ohio’s fiscal trajectory for the next two years and beyond. Watch closely. The policy outcomes and trade-offs in this final budget will shape Ohio’s competitiveness, education approach, and economic resilience for years to come. |
|
|---|
|
| Data Center Demand Accelerates, Pressuring States to Rethink Grid Planning |
|
|---|
|
 |
Surging electricity demand from data centers and similar high-load users is outpacing current grid planning strategies, prompting utility leaders, regulators, and consumer advocates to call for faster, more adaptable policy solutions. The energy demands of hyperscale data centers don’t just challenge utilities—they reshape the grid. With terawatt-scale loads and multi-year planning horizons, these facilities are testing the limits of conventional utility tariffs, transparency norms, and grid cost allocations. - Much of the debate in Ohio has centered around whether data centers should be subject to specialized tariffs. Critics of this approach are concerned that it unfairly singles out one industry and could discourage investment.
HB 15, which Governor DeWine signed into law last month, will help expand behind-the-meter generation and accelerate adoption of grid-enhancing technologies, but pressure on the grid is expected to continue. Given the scale and speed of data center growth, utilities need tools that ensure guaranteed load and performance. |
|
|---|
|
 States can’t afford to play catch-up. As Ohio positions itself to attract high-tech infrastructure—data centers, AI facilities, and advanced manufacturing—the way it regulates large energy users will shape both the business climate and the resilience of the electric grid. |
|
|---|
|
Redistricting Talks on the Horizon as September Deadline Approaches |
|
|---|
|
As lawmakers work to finalize the state operating budget by month’s end, another deadline is approaching: congressional redistricting. The General Assembly has until September 30 to pass a bipartisan congressional map that would remain in effect through 2031. If they fail, the task shifts to the Ohio Redistricting Commission, with a fallback deadline of November 30 for lawmakers to pass another temporary four-year map under tighter constraints. House Speaker Matt Huffman (R-Lima) and Minority Leader Allison Russo (D-Upper Arlington) have both expressed optimism that informal negotiations could begin in August, potentially paving the way for a bipartisan plan. Democrats remain wary of any attempt to expand the GOP’s current 10-5 advantage in the U.S. House delegation. Political observers note that new lines could impact Democrat incumbents with competitive districts such as Reps. Marcy Kaptur, Emilia Sykes, and Greg Landsman. |
|
|---|
|
 Both parties have compelling reasons to compromise—avoiding costly court battles, maintaining voter confidence, and preventing another redistricting mess in 2026. Yet with leadership changes and lingering partisan mistrust, a truly bipartisan solution remains far from guaranteed. The real test will be whether political pragmatism trumps partisan advantage when push comes to shove. |
|
|---|
|
Our Grant Alert list is updated! Review the list of ongoing grant opportunities here: |
|
|---|
|
| |
|
