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Ohio Senate unveils its budget proposal with 5% income tax cuts, separate school funding plan © Laura Hancock State Sen. Matt Dolan is a Chagrin Falls Republican who chairs the Senate Finance Committee. COLUMBUS, Ohio - Ohio Senate leaders released their version of the $75 million, two-year state operating budget bill Monday morning, with a 5% income tax cut and a different school funding overhaul plan than what passed in the House. The 5% tax cuts would cost the state $874 million. It’s higher than the 2% in the version of House Bill 110 passed April 21 in the House, which would cost $380 million. The tax cuts will inevitably set up a legal showdown with the administration of President Joe Biden. In fact, Ohio Attorney General Dave Yost, a Republican like the majority of members of the Ohio House and Senate, has already sued over the American Rescue Plan’s rules that prohibit states from using federal stimulus money to pay for tax cuts.

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