6-27-2025 9:39pm

Rep. Adam Mathews Votes in Support of Republican Operating Budget, Implementing Flat Tax

Beth Callahan Editor

WARREN COUNTY, OH -- State Representative Adam Mathews (R-Lebanon) announced that the Ohio House of Representatives approved the conference committee report for Am. Sub. House Bill 96 –the State Operating Budget. The budget plan, which allocates funding for state programs and operations for the next two years, includes provisions that aim to protect freedom, family and fiscal responsibility – implementing a flat income tax, expanding school choice, funding our public schools, and promoting housing development.

“From a historical maximum of nine tax brackets and a top rate of nearly 10%, Ohio will now have a flat tax of 2.75%, with only Arizona and those states without income tax lower than us,” Mathews said. “This budget moves Ohio forward and is a reflection of our duty to serve as good stewards of our state and constituents’ tax dollars.”

Rep. Mathews drafted and championed key elements of the final budget bill including

A flat income tax of 2.75%, which he originally introduced as House Bill 30
A new $750 tax deduction for contributions to pregnancy resource centers
$25 million in grant funding to local governments that adopt pro-housing policies near major economic development centers, a program aimed at boosting Ohio’s housing supply
Key property tax reforms including prohibiting replacement levies to prevent unintended tax increases, and a clean-up of tax loopholes used to unfairly increase property taxes
Preventing misuse of Medicaid dollars to fund gender transition
Cybersecurity updates for local governments meant to guard taxpayer dollars against cybercrime and theft

A STRONGER ECONOMY WITH A FLAT TAX
Republicans in the legislature have continued to phase down the state income tax in recent years, providing savings for Ohioans. The new budget plan takes the top tax bracket down from 3.5% to 3.125% in tax year 2025 and down to 2.75% in tax year 2026 and into the future. The move to a flat tax makes Ohio more competitive with surrounding states, simplifies the tax code, and spurs revenue.

LANDMARK PROPERTY TAX REFORM

In addition to billions in direct relief, the bill makes a variety of structural changes that aim to promote transparency, update the levy process and enhance checks and balances for property tax rates at the local level, ensuring that taxpayers see more direct control over ballooning property tax bills. The bill also provides direct relief to residential homeowners by allowing the Board of County Commissioners to provide up to a 2.5% owner-occupancy tax credit on a taxpayer’s bill (modeled off the state’s current owner-occupancy credit) for all residents and a permissive homestead exemption for those who qualify for the state homestead exemptions.

EMPOWERING SCHOOL CHOICE

House Bill 96 continues the state’s commitment to school choice by increasing the maximum awards for the Autism Scholarship and Jon Peterson Special Needs Scholarships while also establishing an option for parents whose children attend a non-chartered non-public school to utilize an education savings account to help with the cost of their education. The bill also expands the home school expense tax credit to apply to each student, increasing support for home school families.

BOOSTING FUNDING FOR OHIO SCHOOLS AND LIBRARIES

The budget prioritizes the education and well-being of Ohio students, ensuring that school districts are funded through the final phase of the Cupp-Patterson funding model. Ohio public schools will receive nearly $700 million more for public education over the biennium than they received in FY25. The budget additionally appropriates nearly $1 billion for public libraries across the state.

REVITALIZING LOCAL COMMUNITIES
House Bill 96 continues to invest in various state initiatives that help solidify Ohio as the best place in the nation to live, work, raise a family, and start a business. The bill includes $25 million in funding to provide grants to local governments that adopt policies aimed at boosting housing construction nearby major economic development projects throughout the state. The bill additionally increases funding for Brownfield Remediation, provides funding to help with blight, continued investments for the All Ohio Future Fund, further expands the Welcome Home Ohio program, and helps address the housing shortage across the state through two new targeted initiatives designed to incentivize additional single family home construction.

SUPPORTING OHIO FAMILIES
The budget creates a tax deduction of up to $750 for contributions to pregnancy resource centers, supporting Ohioans who choose to support these life-saving missions. The bill also increases funding for the Help Me Grow program, which is a system of supports for pregnant women, caregivers with new babies, and families with young children with developmental delays and disabilities.

PROMOTING MEDICAID TRANSPARENCY
In an effort to promote transparency in the Medicaid program, the bill works to protect taxpayer dollars and eliminate fraud, waste, and abuse through a number of provisions, creating a variety of new reporting requirements that the Ohio Department of Medicaid must follow and ensuring that important audits will be conducted on state Medicaid spending. The bill additionally prohibits the misuse of Medicaid dollars to fund counseling services that promote gender transition.

BACKING THE BLUE

This budget invests in supporting law enforcement and promoting public safety by providing $65 million over the biennium for local law enforcement training, $21 million over the biennium to support local costs of the MARCS program, which helps equip first responders to better respond to emergency situations, and $27 million over the biennium for the Ohio Narcotics Intelligence Center. Additionally, the budget includes $8 million to provide grants to small county volunteer fire departments.

PRIORITIZING WORKFORCE READINESS AND HIGHER EDUCATION

This budget makes a marked effort to prioritize workforce readiness in Ohio, investing in various higher education programs such as the Governor’s Merit Scholarship, the Choose Ohio First Scholarship, and an increase in the State Share of Instruction by 1% each year, helping lower costs for students at Ohio’s state institutions of higher education.

CHAMPIONING CONSERVATIVE VALUES

The State of Ohio’s budget plan takes a strong stance on reinforcing conservative values.

Enables local governments to provide substantial property tax relief beginning in 2026.
Enacts a flat income tax, making Ohio one of the lowest income tax states in the United States.
Establishes a statewide policy recognizing that there are only two genders.
Excludes the purchase of sugar-sweetened beverages under the SNAP program.
Removes the Governor’s proposed tax increases and several proposed fee increases.
Removes all gaming/gambling expansion provisions.
Requires libraries to keep materials related to sexual orientation or gender identity out of the view of minors.
Eliminates some affirmative action requirements for state contracts.
Prevents menstrual products from being distributed in men’s bathrooms in state-owned buildings.
Makes substantial improvements and enhancements to Ohio’s school choice opportunities for students.
Prohibits Medicaid funds from being used for DEI programs, combatting discrimination and indoctrination.
Includes $10 million each FY for the Parenting and Pregnancy Program and establishes a $750 tax credit for pregnancy resource center donations, defending the sanctity of life and supporting pregnant mothers.
Expands the Ohio Department of Health’s report providing statistics for all abortion reports
Prohibits state agencies from flying any flag except the American flag, state flag, POW/MIA flag, or a flag with an official state agency logo
Prohibits state funds from being distributed to youth shelters that promote or affirm social gender transition.