Highlights of Ohio Gov. Kasich's budget proposal - 21 News Now, More Local News for Youngstown, Ohio -

Highlights of Ohio Gov. Kasich's budget proposal

Updated:

Highlights of Ohio Gov. John Kasich's 2-year budget:

TAX CUTS: Reduces small business taxes by 50%, cuts state income tax by 20% over three years, and decreases sales tax from 5.5% to 5%.

TAX INCREASES: Places taxes on professional services such as lawyers and accountants, and increases tax on large-volume oil and gas drillers.

MEDICAID EXPANSION: Expands Medicaid health care coverage for poor under the new federal health law, making 365,000 more Ohioans eligible.

HIGHER EDUCATION: Puts higher priority on number of students who graduate from public colleges and universities by tying half of state funding to graduation rates, delivering combined $4.7 billion over the biennium.

PRIMARY AND SECONDARY EDUCATION: Gives extra $1.2 billion to public school districts, eases disparities in revenues from local property tax levies, and offers more money to districts based on number of poor, special-needs, gifted and college-bound students.

HIGHWAYS: Creates up to $3 billion for road and bridge projects mainly through bond sales backed by future Ohio Turnpike toll revenues.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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