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Ohio Budget: Browns Stadium Funding Approved, Income Tax Changes Enacted
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Columbus, OH – Governor Mike DeWine has officially signed Ohio’s operating budget into law, a sweeping $60 billion package that includes meaningful funding for a new Cleveland Browns stadium and implements a flat income tax rate that largely benefits the state’s wealthiest residents. The governor’s approval, announced late Monday, also involves changes to the state’s unclaimed funds policy and modifications to the so-called modell Law, which governs sports team relocations.
Key Provisions of the Ohio Budget
The approved budget contains several key provisions that will impact Ohio residents and businesses. These include funding for a new Cleveland Browns stadium, changes to income tax rates, and alterations to the state’s policy on unclaimed funds.
Cleveland Browns Stadium Funding
The budget allocates $600 million for the construction of a new domed stadium for the Cleveland Browns in Brook park. This funding has sparked debate, with some questioning the use of public funds for a private sports team. The stadium project is expected to have a significant economic impact on the region, generating jobs and attracting tourism.
Did You Know? The average NFL stadium construction project costs over $1 billion, with public funding frequently enough covering a significant portion.
Income Tax Changes
One of the most significant changes in the budget is the implementation of a 2.75% flat income tax rate. This change primarily benefits Ohioans earning over $100,000 annually, who previously paid a 3.5% income tax rate. Critics argue that this tax cut disproportionately favors the wealthy, while supporters contend that it will stimulate economic growth by encouraging investment and job creation.
According to the Ohio department of Taxation, the top 1% of Ohio earners pay over 30% of the state’s income tax [1].
Unclaimed Funds Policy
The budget also includes a major change to Ohio’s unclaimed funds policy.The state will now take legal ownership of $1.7 billion in unclaimed funds, setting a 10-year limit for individuals to file claims and be reunited with their missing money. After this period, the funds will become the state’s property. This change is projected to provide a significant boost to the state’s coffers, but it has also raised concerns about fairness and accessibility for those who may be unaware of their unclaimed funds.
Pro Tip: Ohioans can search for unclaimed funds at the Ohio Department of Commerce Division of Unclaimed Funds website.
Medicaid Adjustments
While some Medicaid cuts initially proposed were enacted, Governor dewine vetoed other provisions. The approved changes will still impact healthcare access for some ohio residents,though the full extent remains to be seen. Details on the specific vetoes are expected to be released later today.
Impact on the City of cleveland
The changes to the modell Law,designed to prevent sports teams from leaving publicly subsidized facilities,are likely to impact ongoing negotiations between the City of Cleveland and the Browns.The new language stipulates that the law only applies if a team leaves the state, potentially weakening the city’s leverage in securing a favorable deal.
