July 14, 2025 Legislative Update
Legislative Update
July 14, 2025
Jan Lanier, JD, RN
At long last—HB 96’s legislative journey is almost history, for better or worse.
Still to come, following the governor’s line-item veto of 67 provisions in the state budget bill (HB 96), is the possible override of some of Gov. DeWine’s actions. Because the bill originated in the house, that chamber must initiate the veto override process. Doing so will require the general assembly leadership to hold a special session for the sole purpose of considering a veto override of specific provisions of the bill that the governor removed. A super majority is required in both the senate and the house for the override initiative to be successful. That means republicans must make sure there will be 60 yes votes present in the house and 19 yes votes present in the senate to succeed. With those numbers in mind, the general assembly leadership announced a special session for Monday July 21st to deal with only the vetoed property tax provisions because those are believed to be the most time sensitive at this point. Getting the necessary numbers is not likely to be a problem in July because both chambers have enough republican votes to succeed without reaching across the aisle. Veto overrides of other sections of the bill remain a possibility until the current session of the general assembly comes to a close in late December 2026.
How did we get here?
For the first time in decades, the state’s operating budget was enacted without bipartisan support. The senate passed the conference committee version 23-10 with only Rep. Louis Blessing (R-Colerain Twp.) joining all senate democrats in voting “no”. In the house the vote was 59-38 with republican Reps. Tim Barhorst (Fort Loramie), Levi Dean (Xenia), Ron Ferguson (Wintersville), Scott Oeslager (Canton), and Michelle Teska (Centerville) casting “no” votes along with all the democrats. Not surprisingly, the republicans view the budget as a compromise that benefits all Ohioans while democrats characterize it as a gift to the wealthy.
The bill proposes a 10% excise tax on the illegal sale of recreational marijuana by an unlicensed seller; however, it does not address other marijuana-related issues, particularly how the revenue generated by marijuana will be apportioned among local interests and the state treasury. There are also disagreements within the majority party about the regulation of intoxicating hemp products. Should federally legal hemp products be sold in marijuana dispensaries or accessed through individual businesses? Resolution of those conflicts will be attempted again later in 2025 according to house leaders. Some are hoping that the federal government takes steps to rein in the sale of intoxicating hemp products. That could address one of the sticking points Ohio legislators have thus far been unable to overcome.
(Source: Gongwer-Ohio (June 24, 2025) Proposed changes to marijuana legalization law stall again. Gongwer News Service).
In considering the final budget language, the perception that there are “winners” and “losers “should come as no surprise given how the 136th General Assembly has been operating since it convened in January 2025. However, the ramifications of Ohio’s identified spending priorities coupled with the federal government’s recently enacted “Big Beautiful Bill” will have significant implications for many, even for some who are initially said to be “ winners” in the budgetary process. Timing of the effective dates for various provisions may result in a false sense of security when tax cuts are implemented before the 2026 election while programmatic cutbacks may not be apparent until later. As some have noted, a budget is a “moral document”. How the budget is implemented is as telling as the actual programmatic language it contains. When taxpayers’ dollars are spent, as well as how, are both indications of what a state or country value most.
Even though experts say Ohio’s decision to move to a flat tax rate for the state’s income tax will lead to a loss of $ 1.1 billion, legislators ignored that prediction when it acted to make that change starting in 2026. Property taxes are also on the chopping block thus putting local governments on the hot seat to figure out how to pay for police, fire, schools, parks, and other essential programs with fewer dollars. In Ohio, cutting revenues requires cutting expenditures because , unlike the federal government, the state cannot deficit spend. For that reason, when Gov. DeWine vetoed certain provisions dealing with potential property tax breaks, legislators felt the need to quickly eliminate DeWine’s veto-induced roadblocks.
While some of the details may seem obscure, it is important to have some awareness of the role property taxes play in generating revenue to be used for state and local purposes, especially when income taxes are likely to decrease. Following is a brief description of the property tax provisions that will be the subject of the July special session of the legislature.
- DeWine vetoed a measure granting new authority to county budget commissions (3-member panels made up of the local auditor, treasurer, and prosecutor) that allows them to reduce voter-approved levies on their own initiative.
- HB 96 as passed by the general assembly would restrict the kinds of levies that a school district could put on the ballot. Replacement levies, fixed-sum or substitute emergency levies, and combined income and property tax levies would be prohibited. The governor in his veto message argued that these options were “important tools” for school districts.
- He also vetoed a change to the way school district millage gets calculated. The Ohio constitution grants jurisdictions the authority to levy up to 10 mills (or 1% of a property’s value) without voter approval. As property values rise, that millage brings in more money. In 1970, Ohio put a brake on these kinds of increases by creating a reduction factor that brings down rates, which stabilizes homeowners’ tax bill. However, if property values rise high enough the rate can’t get reduced further. The reductions cannot bring a school district’s tax rate below 20 mills. School districts found a work-around to that limitation making certain levies not subject to the reduction factor. HB 96 would have required additional levies to be counted as part of the 20-mill floor which would mean school districts would face additional reductions in their revenues.
(Source: Evans, N. (July 10, 2025) Ohio house lawmakers launch bid to override three of Gov Mike DeWines’ property tax vetoes. Ohio Capital Journal).
These are the provisions that will be on the house session agenda on July 21st. The governor’s alternative approach spelled out in his veto message was to convene a working group of legislators, agency officials, school officials, community members, and subject matter experts to craft meaningful property tax recommendations. The work group is to report by September 30, 2025. Leaders of the group are former state and federal legislator Pat Tiberi who now leads the Columbus Business Roundtable and Bill Seitz a long-time member of the general assembly who retired in 2024. Both are republicans.
Although the idea for a work group has faced mixed feedback, there is bipartisan agreement that property tax relief is urgent.
The budget—what’s in, what’s out and what remains to be seen
HB 96 appropriates $90.5 billion in general revenue funds for fiscal years 2026 and 2027. The senate version of the bill largely won out in the conference committee report when it came to policy matters such as K-12 school funding, property tax measures, and income property tax changes. Other provisions include in part:
- Re-directing the functions of the Joint Committee on Medicaid Oversight (JMOC) to the house and senate standing committees on Medicaid. (These committees are not created by statute but are determined by house and senate leadership in each general assembly. JMOC has been a statutory committee since its inception, and as such it has enjoyed a semblance of permanence that standing committees typically cannot expect). The budget does require the standing committees to meet at least annually to oversee the Medicaid program with the support of the legislative service commission. It remains to be seen how that oversight will actually work given the change.
- Decreasing the size of the state board of education to five members all appointed by the governor rather than having a portion of the board elected by voters.
- Empowering both the house and senate to utilize security for lawmakers independent of that already provided by the state highway patrol.
- Classifying legislative documents, not already exempt from the public record, as unavailable to the public until after the general assembly in which they are created adjourns sine die. This is seen by some as creating even less transparency in the legislative process thus making it harder for citizens to know what is actually going on at the statehouse.
- Eliminating the Ohio election commission and transferring its duties to the newly established Ohio Election Integrity Commission within the secretary of state’s office.
- Requiring pharmacy benefit managers to reimburse pharmacies for the actual acquisition cost but no longer requiring a minimum dispensing fee. (This was eventually included in the line-item veto issued by Governor Mike DeWine because of alleged “drafting errors” that both parties requested. (See below for more information).
- Making changes to the Ohio Department of Health’s (ODH) annual abortion report and establishing a new monthly report as part of the changes. Data will now include the total number of Ohio residents versus non-Ohio residents who have undergone an abortion and received post-abortion care. Physicians are required to fill out reports on both surgical and medication abortions. The report will include information about individuals’ zip codes which could create privacy concerns.
- The ODH Genetic Services fund can be used for screenings and genetic disease programs but not for abortion counseling or referrals except in an emergency.
- Allotting $5 million to the Ohio Department of Children and Youth for the purchase of 3D diagnostic ultrasound machines; however, only those who do not promote abortion or provide abortion-related medical care or make referrals for abortion are eligible for the machines.
- Providing up to $750 per year as a personal income tax deduction for those who donate to pregnancy resource centers.
- A provision to fund research looking into causes, diagnoses, prevention, and treatment of pediatric cancer was lowered from the $10 million proposed by the governor to $5 million
- Appropriately $1.6 million was cut from funding for community projects that support families assisting families in avoiding crisis and crisis intervention.
- Including $5 million in each fiscal year from the Maternal & Child Block grant to be used in the areas of prenatal, maternal, perinatal, and infant activities.
- Funding a mental health block grant ($1.7 million in both fiscal years) for infant and early childhood mental health activities and $6 million each year from tobacco use prevention cessation and enforcement to fund entities that serve women living in communities with the highest infant mortality rates.
- Publicly funded childcare eligibility remains at 145% of the federal poverty level while advocates sought an increase to 200% or 160% at a minimum. (Ohio’s current level is one of the lowest in the country).
(Sources: Tebben, S. (July 1, 2025) Ohio Gov. Mike DeWine sidesteps budget vetoes in child care sector. Ohio Capital Journal.
Tebben, S. (June 30, 2025) Ohio budget makes abortion reporting changes and reductions in infant mortality funding. Ohio Capital Journal.
Gongwer-Ohio (June 25, 2025) Legislators send $90.5 billion budget to DeWine. Gongwer News Service.
Gongwer-Ohio (June 24, 2025) State operating budget bill set for final floor votes. Gongwer News Service.)
Childcare assistance for parents of young children
Governor DeWine did not veto budget items dealing with childcare. HB 96 includes a cost-sharing model for childcare involving government dollars along with employer and employee contributions. Federal dollars will continue to go to a subsidy program for eligible families, and a recruitment and mentorship grant program was also included. Advocacy groups said the budget holds state-funded childcare at current levels and changes the way providers are paid but that is not enough. A shortfall of $600 million in childcare funding in the next biennium is predicted.
Continued Medicaid coverage for young children
Gov. DeWine vetoed a provision that would have stopped efforts by the Ohio Department of Medicaid (ODM) to try to obtain a waiver from the federal government that would allow Ohio children to continue on Medicaid until age four. The so-called presumed eligibility was adopted during COVID, in an attempt to provide young children with continuity in the health care they needed. Once the COVID emergency ended the presumed eligibility for this category of individuals became optional under federal law. The previous general assembly directed Ohio to seek a waiver so the program could continue here; however, that waiver request was not submitted prior to the new administration taking over in Washington. If the budget language had prevailed, the requirement for ODM to act would have been repealed. With DeWine’s veto, however, the direction to seek the waiver remains in place, at least temporarily. It is likely to be one of the vetoes that the general assembly will attempt to override at some point. House finance committee chair Rep. Brian Stewart (R-Ashville) questioned whether the Trump administration would approve the waiver, and he also questioned how the state would pay for it if it were approved because there is no funding source in the new budget. Stewart called the veto decision ”unwise” in part because there was no money allocated to cover the cost.
Source: Gongwer-Ohio July 2, 2025. House chair calls continuous Medicaid coverage for babies ‘unwise’. Gongwer News Service.
Pharmacy measure veto & its implications
Pharmacists believed that provisions inserted into HB 96 that were intended to address pharmacy reimbursements from middlemen (pharmacy benefit managers or PBMs) would have made the issues pharmacists face worse rather than better. Insufficient reimbursement has been a longstanding issue. Legislation was introduced earlier in 2025 (HB 192) that would require PBMs to reimburse pharmacies for drugs based on a public database compiled by the federal government. In addition, PBMs would be required to pay a $10/person/prescription dispensing fee to cover pharmacies’ overhead. The current payment mechanism has led to numerous pharmacies being forced to close their doors. (Ohio lost 215 pharmacies last year.) Efforts to address the concerns in the budget were complicated when the Chamber of Commerce got involved and told the senate that the dispensing fees were a “tax” and should be opposed. The senate’s attempt at a compromise would have required PBMs to reimburse pharmacies in a transparent system but the dispensing fee was eliminated. All parties agreed to eliminate the language that found its way into the budget realizing more work was needed.
(Source: Schaladen, M. (July 1, 2025) Gov. DeWine vetoes measure that would have been ‘suicide’ for Ohio pharmacies. Ohio Capital Journal.)
Other health-related items vetoed
- Limiting the department of aging’s ability to use the senior community services appropriation to administer senior programming across the state.
- Prohibiting the health department from distributing funds to youth homeless shelters that promote or affirm gender transition.
- Requiring the department of job and family services to seek a waiver excluding sugar-sweetened beverages from purchase using supplemental nutrition assistance program (SNAP) dollars.
- Requiring ODM and managed care plans to pay Medicaid claims without credible information to verify the claim at the time of payment.
- Assigning individuals to a random Medicaid managed care plan if they do not specify a plan.
- Providing a rate add-on for nursing facility dialysis services and expanding the pool of providers eligible for funding.
- Increasing personal needs allowance for nursing home and intermediate care facility residents from $50 to $75.
- Requiring hospitals with a maternity unit that accepts Medicaid to enter into a transfer agreement with a freestanding birthing center.
- Limiting a potential transfer from the Health and Human Services Fund to the GRF if Medicaid does not have sufficient funds.
- Requiring individuals running for school board seats to identify their political party affiliation unless they are running as independents.
(Source: Gongwer-Ohio (July 2, 2025) House chair calls continuous Medicaid coverage for babies ‘unwise’. Gongwer News Service.)
Putting the state of the state into perspective
Ohio’s standing when compared to other states is far from stellar with respect to health outcomes:
- 9th most unhealthy state
- 39th in cardiovascular deaths
- 40th in cancer deaths
- 40th in mental health
- 43rd in infant mortality
- Among the top five states in opioid-related overdose deaths.
(Source: Baker, R. (June 2025) Budget, Bipartisanship, Celebrating Equality and Recognition. Newsletter retrieved on June 30, 2025 from
https://mail.google.com/mail/u/0/?tab=rm&ogbl#trash/FMfcgzQbfxgcMQCwZTPXbLJbdjkZlJnD )
With these data it seems curious that legislators agreed to devote fewer state dollars to address many of these issues.
For months Ohioans have been hearing how precarious the state budget is. The need to eliminate some programs and fund others at lower levels than needed, particularly education and social services programs, drove most of the budget discussions. However, Ohio ended FY 25 with a $1.1 billion unencumbered balance! None of that money is slated to go to the state’s Rainy-Day Fund, however, because that fund already has $3.9 billion. Much of the current income overage was already included in the HB 96 budget. Whether revenues continue to meet or exceed predictions remains to be seen, but Ohio does not have a trillion-dollar plus deficit that would require some painful programmatic cuts. It is important to consider both sides of the ledger when making financial decisions that impact the entire state.
Personnel changes in house democratic leadership.
Rep. Allison Russo (D-Upper Arlington ) recently announced she was stepping down from her role as house minority leader. In late June, the democratic caucus selected Rep. Dani Isaacsohn (D-Cincinnati) as Russo’s replacement. Previously he was the assistant leader under Rep. Russo. Subsequently, that decision was ratified by the full house 94-3. Voting “no” on his election were republican Reps. Ron Ferguson (Wintersville), Beth Lear (Galena) and Michelle Teska (Centerville). The remaining members of the democrats’ leadership team are Reps. Phillip Robinson (Solon) assistant leader, Beryl Brown Piccolantonio (Gahanna) whip, and Desiree Tims (Dayton) assistant whip.
In his remarks to his house colleagues after being sworn in as the new minority leader, Isaacsohn noted that house democrats “represent more than 4 million Ohioans, which is a total higher than the populations of 20 states.” He noted how important it is for their points of view to be a factor when decisions are made by the legislature.
Isaacsohn holds a bachelor’s degree from Georgetown University, a Master of Philosophy degree from the University of Cambridge, and a juris doctor from Yale Law School. Before becoming a member of the house, he founded a community engagement firm and was an organizer for President Barack Obama’s 2012 campaign and Hilliary Clinton’s 2016 campaign in Virginia. He interned at the White House Counsel’s Office and was a deputy political director and campaign director for Battleground Texas.
(Source: Gongwer-Ohio (June 24,2025) Isaacsohn sworn in as house minority leader. Gongwer News Service).
