Ohio Gov. Mike DeWine unveiled his proposed fiscal years 2026 and 2027 spending plan, which calls for spending more than $219.3 billion over the next two years.
The budget proposes spending more than $108.6 billion in fiscal 2026 and more than $110.7 billion in fiscal 2027.
The fiscal 2026 budget is about 2.9% higher than the Buckeye State’s estimated fiscal 2025 budget of $105.6 billion.
“Our executive budget is all about investing in Ohio’s greatest asset, our people,” DeWine said in a statement. “The budget I am sending to the legislature today continues to build on the things that make Ohio the Heart of it All: our children and our families, our students and our workforce, and our businesses and our communities. Importantly, this budget is also designed to ensure that Ohio’s strong economic growth continues for years to come.”
In testimony to the Ohio House Finance Committee, Office of Budget and Management Director Kimberly Murnieks said the budget is “conservatively forecast and balanced.”
According to the budget document from the governor’s office, 45.2% — or more than $99.1 billion — of the proposed fiscal 2026 and 2027 allocations go to Medicaid. The proposed fiscal 2026 allocation is a 9.6% increase over the estimated fiscal 2025 budget.
Additionally, about 15.2% of the two-year budget goes to general government, 13.7% to primary and secondary education and 2.8% to higher education. General government spending is set to decline by 8.3% in fiscal 2026, and primary and secondary education will decrease by 3.1%.
However, higher education would increase by 3.2% in fiscal 2026.
The budget would double the historic preservation tax credit’s annual maximum to $120 million starting in fiscal 2026. It also includes a $1,000 refundable credit per child through age six for working parents with a full-time minimum-wage job. The credit phases out at designated income levels.
DeWine’s executive budget includes funding for the Governor’s Merit Scholarship, which provides $5,000 scholarships to the top 5% of high school graduating classes, hoping they will attend an Ohio college or university. In 2024, the scholarship’s inaugural year, Ohio’s graduating high school class had 6,200 eligible students, and roughly 76% accepted the scholarship.
“The budget will also guarantee admission to any state institution of higher education for high school graduates in the top ten percent of their graduating class, and requires that any recipient of the Governor’s Merit Scholarship be entitled to admission at any state higher education campus,” Murnieks said in prepared testimony.
State Rep. Bride Rose Sweeney, D-Westlake, said the budget does not provide enough tax relief for Ohio property owners.
“Ohioans are crying out for immediate property tax relief,” the lawmaker said in a statement. “This budget proposal fails to lower the cost of living for homeowners, seniors and Ohioans on fixed incomes.”
The budget also continues the phase-in of the state’s school funding formula implemented in fiscal 2022, funding students where they attend school and reducing funding guarantees to schools with decreasing enrollment.
“While there are many details to be ironed out, The Buckeye Institute commends Governor DeWine for acknowledging that the state is overfunding public school districts with declining enrollment and not providing enough funding for schools that students are attending,” Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute, said in a statement. “Buckeye also applauds Governor DeWine’s effort to better align Ohio’s higher education funding to outcomes for graduates and is pleased with the proposal to ensure students in K-12 schools are given comprehensive information about in-demand jobs.
“Notwithstanding the positives, The Buckeye Institute is disappointed not to hear anything about future tax reform, and there are concerns about the level of overall spending growth, such as increasing the local government fund at a time when rising property taxes are providing localities with plenty of tax dollars,” Hederman added.
Republican legislators voiced their opposition to DeWine's proposed budget.
“The governor will not be here when the consequences of this budget are realized," Rep. Jennifer Gross, R-West Chester, said in a statement. "When you look at the proposed revenue from income tax, you can see that even with a balanced budget our spending continues to increase. With this budget there's no chance of abolishing the income tax. I'm still reviewing this budget, but I expect the House budget will be considerably different.”
Rep. Ron Ferguson, R-Wintersville, released a statement in which he tersely stated: "The budget should be cutting taxes, not raising them.”
