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Ohio is facing the most severe financial crisis in decades.  House Bill 318 would freeze income tax rates at 2008 levels for tax years 2009 and 2010 in order to restore support for primary and secondary education and to avoid making deeper reductions to other important programs and services. 

This bill is necessary because $851 million in state support for primary and secondary education is at stake.  This is a result of a recent Ohio Supreme Court Decision which ruled that the installation of Video Lottery Terminals (VLTs) at Ohio’s seven racetracks, as contained in House Bill 1, will have to go to the ballot for voter approval in November 2010.  The proceeds from the VLTs are earmarked for primary and secondary education.  Moreover, state reductions of this magnitude would jeopardize an additional $1.5 billion in federal stimulus funds for Ohio’s public schools.  This would create a $2.3 billion budget reduction to primary and secondary education over the biennium. 

On Wednesday October 21, 2009, the Ohio House passed HB 318 by a vote of 55 - 44.  We anticipate the Ohio Senate to hold hearings on the bill the week of October 26, 2009.

The OEA supports the budget solution contained in HB 318 and urges you to contact your State Senator to support the bill.