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​​Governor Mike DeWine signs FY26-27 biennial state operating budget into law

7/1/2025

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​​Governor Mike DeWine signed the FY26-27 biennial state operating budget into law on June 30. Included in the budget was a provision championed by the Toledo Regional Chamber of Commerce to improve the highway connection between northwest and central Ohio. The provision requires the Ohio Department of Transportation (ODOT) and the Ohio Turnpike and Infrastructure Commission (OTIC) to collaborate on a solution that connects US23 and I-71 to improve safety and predictability for the movement of commerce and people between the regions.

Specifically, ODOT and OTIC are required to provide:
1. an interim report to conceptually identify and evaluate the corridor alternatives and alignments and authorizes ODOT and OTIC to consider alignments that were not part of the original list. The interim report is due October 1, 2025.

2. a final joint plan to identify a preferred route for the connecting corridor, including all preliminary engineering assessments (design, cost estimates, right-of-way, and environmental impacts, etc.), and recommend whether final implementation should be through ODOT or OTIC. The final joint plan is due October 1, 2026.
Improving our highway connection will enhance economic opportunities for businesses of all sizes throughout Ohio and beyond. It will also enable Ohio to take full advantage of the opening of the Gordie Howe International Bridge connection between Detroit and Windsor. The Gordie Howe will improve the predictability and efficiency of the flow of goods, much of which flows through the Toledo region.

Thank you to the scores of organizations and businesses who have helped make the case for this project.

In other budget news…
• Governor DeWine used his line-item veto authority to strike 67 provisions from the budget including: phasing out the sales tax exemption for data centers (meaning the exemption remains intact) and a provision to eliminate replacement levies (meaning local governments will retain the ability to put a replacement levy on the ballot).
• Phases down the state income tax to a flat rate of over two years. For tax year 2025, reduces the top bracket rate (income over $100,000 from 3.5 to 3.125% while retaining the 2.75% rate for income between $26,050 and $100,000. For tax year 2026, further reduces the top bracket rate so that a flat 2.75% rate applies to all income over $26,050.

For a full version of the passed (or As Enrolled) version of the budget and the Governor’s line-item vetoes can be found at https://www.legislature.ohio.gov/legislation/136/hb96/documents. 
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