DeWine blocks budget provision restricting school levies

Ohio Governor Mike DeWine has vetoed a budget provision that would have stripped local governments and school districts of tools for raising property tax revenue, arguing the move would jeopardize their long-term financial stability.

The governor's veto blocked a measure that would have eliminated the authority for political subdivisions to levy replacement property tax levies. It also would have removed the ability for school districts to propose fixed-sum emergency, substitute emergency, and combined income and fixed-sum property tax levies.

In his veto message, DeWine acknowledged the broader need for property tax reform in Ohio. He announced plans to form a working group including legislators, state agency officials, school leaders, community members, and tax experts to address the issue comprehensively.

The Ohio House Democratic Caucus had urged DeWine to veto numerous provisions in the budget, including the levy restrictions.

In a letter to the governor, Democrats argued that the budget prioritized "gimmicks instead of targeted, need-based, state-funded property tax relief" and criticized its impact on local governments' ability to provide vital services. They warned that eliminating these levy options would "dramatically impact the ability of schools and local subdivisions to deliver vital services to the people of Ohio."

DeWine says his decision to veto the levy restrictions underscores his administration's stance on maintaining local control and funding mechanisms for schools, despite the state's push for broader tax reform.