07/02/25

In the late evening hours leading up to the start of Ohio’s new fiscal year on July 1, Governor Mike DeWine exercised one of his most consequential powers — his line-item veto authority — to strike 67 provisions from the final State Operating Budget (House Bill 96). His sweeping use of the veto pen drew praise from some corners and disappointment from others, setting the stage for continued debate in the months ahead.

As Ohio’s largest legislative measure, the biennial State Operating Budget shapes the policy and fiscal roadmap for the next two years. Your OBL team has been actively engaged since the Governor’s original proposal was unveiled in February, ensuring banking priorities remained protected throughout the process. While OBL has reported separately on major wins for banks — including critical fixes to the Homebuyer Plus Program — it’s important to recognize that the Governor’s vetoes may still reshape conversations at the Statehouse as legislators weigh potential overrides this summer and fall.

With Republican supermajorities in both the Ohio House and Senate, the General Assembly has the votes to override any or all of these vetoes if they remain unified. Overrides must be taken up individually — a time-intensive task that could consume significant legislative bandwidth in the coming months.

This dynamic is made more complex by Governor DeWine’s status as a term-limited, second-term Governor. As his time in office winds down, the usual push and pull between the legislative and executive branches often intensifies. Lawmakers, already eyeing the next Administration, may feel emboldened to act independently — particularly on hot-button issues like property tax relief.

Rising property tax bills have become a true kitchen-table issue for Ohio families and businesses alike, and the pressure to address this concern is mounting. A grassroots campaign is even gathering signatures to place a constitutional amendment on the 2026 ballot that would ban property taxes altogether — a radical shift that would upend funding for schools, local governments, and first responders. Lawmakers are mindful of this threat and may view a legislative fix — or the resurrection of some of these vetoed reforms — as necessary to reassure voters that meaningful property tax relief is on its way.

Thankfully, no major banking priorities were directly affected by these vetoes — a testament to your OBL Government Relations team’s tireless advocacy every step of the way. Below is a snapshot of several significant vetoes that are now part of the ongoing conversation at the Statehouse:

• Remote Work for State Employees: Struck a provision that would have extended remote work arrangements until 2026, keeping in place in-office work requirements.
• Property Tax Authority: Vetoed new powers for county budget commissions to reduce voter-approved levies, preserving local control and honoring the will of voters.
• Education Tax Credits: Removed a new nonchartered nonpublic school savings account program to maintain funding for traditional public schools.
• Environmental Conservation: Preserved the ability for H2Ohio funds to be used for land or conservation easements, sustaining critical water quality and conservation work.
• Historic Preservation & Economic Development: Maintained the Ohio Historic Preservation Tax Credit Program and the film and theater production tax credit, protecting important tools for revitalizing communities and spurring local economic growth.
• Sales Tax Exemptions: Protected sales tax exemptions for newspapers, printed materials, and motion pictures — supporting Ohio’s media and creative industries.
• Administrative Rulemaking & Red Tape: Rejected several provisions that would have added layers of complexity to the rulemaking process, prioritizing efficiency and flexibility.

The list above is just a sample of the wide-ranging nature of the Governor’s vetoes. While none have an immediate direct impact on Ohio banks, the broader policy ripple effects — from property tax relief efforts to local economic development incentives — are worth monitoring closely. Rest assured, your OBL advocacy team will remain vigilant, ensuring the industry’s voice is heard as override efforts unfold.

If you’d like to receive timely, detailed updates on OBL’s ongoing advocacy work — including the status of veto override efforts, legislation we’re tracking, and opportunities for you to engage — please reach out to Anthony Lagunzad, OBL Manager of Government Relations & BankPac, at alagunzad@ohiobankersleague.com to sign up for our Government Relations Council newsletter.

Together, we will continue to advocate for a strong, competitive banking environment — and for Ohio communities that thrive alongside our member banks.