Among the possible questions voters might face on the ballot this fall is whether they want to make it harder to raise the state income tax, by requiring approval from a supermajority of state lawmakers.
State lawmakers are now considering Gov. Mike DeWine’s 18-cent gas tax increase, to plug a hole of more than a billion dollars in the Department of Transportation’s budget. But one legislative leader says they’re also looking for ways to cut taxes – again.
At this time last year, state lawmakers were in the midst of creating a two year budget with a deficit that was more than a half a billion dollars. It’s a different situation this year, but for the second month in a row, personal income tax collections came in at a rate lower than expected.
For the second month in a row, the state collected more income taxes than forecasts suggested it would. That’s quite a turnaround from last year, when the new state budget had to be trimmed as income taxes fell short nearly $850 million.
Just one month ago the House, Senate and governor finished a marathon budget battle where leaders had to fill a $1 billion gap. Now the state is getting its first look at how the economy is shaping up for the next two years.
House Republicans went back to the drawing board to roll out a new budget plan after seeing tax revenues coming up short month after month. The changes include taking out nearly all of Gov. John Kasich’s tax reform proposals and redirecting focus on the drug epidemic.
State lawmakers are sifting through the many policies listed in Gov. John Kasich’s last budget plan. The proposal reprises many of Kasich’s past reforms that he tried and failed to get through the Legislature in previous attempts.