Ohio Gov. Mike DeWine’s proposed $218 billion state budget would fully fund public education, and raise taxes on tobacco and marijuana, as well as on sports betting companies to help fund things like the Cleveland Browns stadium project.
The budget is in the early stages, and due by July 1. It will now be up to lawmakers to shape and pass a two-year budget to send DeWine. The budget is projected at $108 billion for fiscal year 2026 and $110 billion for fiscal year 2027.
Unsurprisingly, the vast majority of the governor’s press conference was based around children. DeWine did not release the proposal until after the presser took place.
“It’s a budget for our kids,” DeWine said. “And I think it’s a very, very good budget for our kids.”
He included fully funding public education with the third phase of the Cupp-Patterson plan, though he did propose reducing “guarantee” money for certain public school districts to 95% in the first year and 90% in the second.
Other benefits proposed by DeWine include creating new $1,000 child tax credits for parents, providing more access to literacy and vision care for children, and proposals to make child care more affordable by expanding the eligibility for publicly funded programs.
There would also be a new scholarship, which provides the top 5% of each high school graduating class with a $5,000 scholarship to attend an Ohio college or university.
The governor would also focus on drug task forces, preventing opioid deaths and expanding 911 services.
The transportation budget would have hundreds of millions for roadway safety without $100 million to provide more affordable housing in rural communities.
The governor has also proposed significant tax increases on marijuana, tobacco, and sports betting.
Mirroring a bill passed by the Senate in 2023, DeWine wants to make marijuana significantly more expensive by raising the tax from 10% to 20% at the point of sale.
In November of 2023, voters overwhelmingly passed Issue 2 — which allowed adults 21 years of age and older to smoke, vape and ingest weed. Individual Ohioans are able to grow up to six plants with up to 12 per household. Dispensaries have been able to sell recreationally since Aug. 6, 2024.
DeWine also proposed increasing cigarette taxes by $1.50, from $1.60 per pack to $3.10. This comes alongside his proposal to increase the tax on vape products from 17% to 42%.
As for sports betting, DeWine has proposed doubling it from 20% to 40% and using the proceeds to fund professional sports stadiums as well as youth sports in Ohio.
The Cleveland Browns are currently suing the city of Cleveland in federal court as the battle over the future of a proposed domed stadium outside of downtown Cleveland and instead in Brook Park heats up.
The team is going to court to get clarity on the so-called Modell law, a state law designed to make it harder for sports teams to leave taxpayer-supported venues in their home cities.
The Browns are asking a judge to rule that the law is unconstitutional – or that it doesn’t apply to the team’s plan to build Huntington Bank Field in Brook Park.
Cleveland Mayor Justin Bibb has said that Browns owners Jimmy and Dee Haslam said they’re focusing on building a new stadium in Brook Park — and no longer exploring the possibility of renovating the existing, city-owned stadium on the Downtown lakefront.
The team’s lease in Cleveland ends after the 2028 season, and the Browns hope to move in 2029.
The Haslam Sports Group is said to be lobbying the state and asking for upwards of $600 million toward the project.
Instead of giving the Browns a lump sum of money, DeWine proposes adjusting the sports gaming tax and creating the Sports Construction & Education Fund for any professional team.
His proposal to double the gambling tax from 20% to 40% would fall on the backs of the betting companies.
“These sports gaming [groups] are extremely aggressive… They’re in your face all the time,” DeWine said. “They’re getting Ohioans to lose massive amounts of money every year and it seems to me only just and fair that some of the stadiums be paid for by them or a portion of it.”
Dave Jenkins, the COO of the Haslam Sports Group, responded to the budget with the following:
“We appreciate Governor DeWine’s commitment to looking at creative ways to solve sports facilities development while positively impacting youth sports throughout Ohio. We look forward to learning more about the options this legislation may provide. At the same time, we continue to work with the appropriate stakeholders and other experienced experts to develop alternative funding mechanisms for an enclosed Huntington Bank Field in Brook Park, knowing the importance of not tapping into existing taxpayer funds that go to other pressing community needs. The model we’ve proposed on the state level would leverage only the incremental tax revenues from within the development itself to enable the project. The Brook Park Huntington Bank Field project is more than just a stadium. Combined with the adjacent mixed-use development, which would be enabled by approximately $2B in private investments, this $3B+ economic development project would be among the largest ever in Northeast Ohio. It truly is a generational opportunity to create a robust, revenue-generating district that will bring in new jobs and new visitors to our region and significantly impact our economy.”
The Ohio House Finance Committee will hear the budget over the next few weeks before making changes and sending it to the Senate.
This article was originally published on News5Cleveland.com and is published in the Ohio Capital Journal under a content-sharing agreement. Unlike other OCJ articles, it is not available for free republication by other news outlets as it is owned by WEWS in Cleveland.
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