School, tax changes move through Ohio Senate

COLUMBUS (AP) — As he heads into a fall re-election bid, Gov. John Kasich today backed a package of new tax cuts and a one-year reprieve from school district and teacher penalties related to the state’s new education and teacher evaluation standards.

Those and a host of other proposals were woven into four midterm budget bills moving through the GOP-led Ohio Senate. All four bills have already cleared the Ohio House, but state representatives would have another chance to review the changes.

Kasich’s tax proposal includes accelerating a planned 10 percent income-tax reduction by six months by reducing withholding rates on the final 1 percent in July rather than January.

His plan would also boost small business income-tax reductions to 75 percent from 50 percent for tax year 2014 and would double the earned-income tax credit available to low-income Ohioans from 5 percent to 10 percent of the federal credit. Another change would raise personal income-tax exemptions for low- and middle-income taxpayers making under $80,000 a year.

The administration said stronger state revenue than expected would allow for the cuts, estimated at $402 million.

Under amendments incorporated into a midterm budget bill on education, which cleared the Senate Education Committee today, Ohio school districts and teachers would get a one-year reprieve from funding penalties or job sanctions tied to new state learning and teacher-evaluation standards.