Ohio Senate budget freezes tuition, cuts small business tax

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COLUMBUS, Ohio (AP) — Senate Republicans are eliminating all income taxes for a portion of small business income, freezing tuition at state universities and restoring Medicaid health coverage for certain pregnant women and women with breast and cervical cancer.

Those and other Senate changes to Ohio’s two-year, $71.5 billion budget were announced Monday.

The Senate spending blueprint retains an income-tax rate reduction of 6.3 percent, a cut worth $1.26 billion. It exempts the first $250,000 of small-business income from the tax.

Senators say their budget is $1.1 billion less than Republican Gov. John Kasich’s and $1.7 billion less than the House.

As expected, the Senate didn’t restore a proposed tax increase on oil-and-gas extraction backed by Kasich.

Senate changes are scheduled to be debated starting Tuesday. The legislation faces a June 30 deadline.

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