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OSCPA Town Hall covers Ohio’s biennial budget priorities
Written on Feb 27, 2025
Ohio’s biennial budget is in full swing, and the Feb. 20 OSCPA Town Hall provided an overview of the provisions under consideration and how Gov. DeWine’s last budget proposal of his term aligns with the OSCPA’s legislative agenda.
Tom Zaino, JD, CPA, managing member and founder of Zaino Hall & Farrin LLC and a former Ohio Tax Commissioner, and OSCPA Vice President of Government Relations Greg Saul, Esq, CAE, joined OSCPA President and CEO Laura A. Hay, CPA, CAE to identify some of the more impactful proposals on the Ohio business community.
Gov. DeWine’s office says the proposed budget prioritizes Ohio's children, workforce, communities and the economy while continuing to make state government more efficient, responsive and cost effective.
In an overview of the state’s fiscal health, Saul shared:
Ohio is currently running a budget surplus of over $500 million thanks to 2024’s expanded sales tax holiday. Originally, the sales tax holiday was projected to lower sales and use taxes to Ohio by $750 million but came in at only a third of that at a $250 million impact.
State revenues for FY 2025 are coming in tighter but on target compared to a 1.7% deficit in FY 2024. The $500+ million is a surplus of 3.2%. Years prior have seen $1+ billion surpluses.
Ohio’s rainy-day fund is at historic levels at nearly $3.9 billion. The state is well positioned should a recession occur.
For FY 2026 – 2027, the General Revenue Fund (GRF) revenues are estimated to come primarily from federal reimbursement for Medicaid (35%), sales and use tax (32%), personal income tax (23%), and the Commercial Activity Tax (5%).
Ohio’s tax tax expenditures continue to increase – up to 177 from 129 in 2017. It is estimated that the expenditures will lead to less GRF money to the state and be at nearly $13 billion by the end of the 2027 fiscal year, up from $9 billion in 2017.
Zaino outlined Gov. DeWine’s non-budget priorities:
Families & children: A focus on families and children by continuing the expansion of childcare opportunities and creating a new child tax credit in the area of education.
Education: Providing the top 5% of high school graduates with a guaranteed main campus admission to state college campuses.
Mental health/addiction services: Continued expansion of mental health and addiction services in communities.
Housing: Setting aside more than $300 million for upgrades to roadway safety, 911 services and cyber security.
Zaino said there are some changes to watch for in the coming year as the result of Gov. DeWine’s proposal:
Significant increase in the “sin taxes” on cigarette tax and other tobacco products
Doubling of the sports gaming tax from 20% to 40%
Increasing the recreational marijuana tax from 10 to 20%
CAT NOL Credit – to be made “nonrefundable” in 2030
Replacement Tire Fee made permanent
Adds language to Bonus Depreciation provision requiring apportionment of the deduction
Making Ohio Lottery sports gaming proprietors responsible for withholding on video lottery terminal winnings
“If you have clients in these industries, you ought to be highlighting these for them,” Zaino said.
Workforce Development
In the second half of the Town Hall event, Hay covered the new pathways legislation signed into law on Jan. 8, calling it the “perfect coming together of our advocacy and workforce development initiatives.”
Hay emphasized the importance of collaboration going forward. “This will still take all of us to build a diverse and strong pipeline of incoming CPAs in Ohio.”
The Ohio Society of CPAs is engaging with leaders and key stakeholders in the business, academic, government, and nonprofit space to build and implement an action plan to spark meaningful and lasting change that will close the accounting talent gap. More than 50 companies have signed on as partners in The Ohio Accounting Talent Coalition. OSCPA members can demonstrate their commitment to the profession and this important workforce development initiative by becoming active members of the Coalition.
The March 20 Town Hall event will provide more details about the work and progress of the Coalition. Register today!