Highlights of Ohio Gov. Kasich's midterm budget

The Associated Press Published:

A look at the key proposals in Ohio Gov. John Kasich's midterm budget bill:

TAXES:

-- Cut Ohio income taxes by 8.5 percent to bring the top rate to 4.66 percent by 2016.

-- Increases earned income tax credit from 5 percent to 15 percent.

-- Raises personal tax exemption from $1,700 to $2,700 for those earning less than $40,000 and from $1.700 to $2,200 for those earning between $40,000 and $80,000.

-- Raise Commercial Activity Tax rate from 0.26 percent to 0.30 percent.

-- Increase cigarette taxes from $1.25 to $1.85 a pack, with similar increases on other tobacco products and e-cigarettes.

-- Raise the severance tax rate on high-volume drillers to 2.75 percent of gross receipts, exempting $8 million per well in start-up costs.

-- Earmark 20 percent of drilling-tax collections to local communities, through a combination of direct payments, competitive transportation grants and a legacy fund controlled by newly created regional commissions appointed by the governor.

EDUCATION:

-- Extend vocational options to 7th and 8th graders.

-- Establish dropout recovery programs for adults ages 22 and older at eligible community colleges and career centers.

-- Provide $10 million in casino licensing fees for Community Connectors mentorship program.

-- Tie two-year colleges' state funding to completion rather than enrollment.

-- Base 50 percent of state funding to technical centers on the percentage of students who find jobs.

-- Allow two-year colleges to offer students a guaranteed tuition rate.

-- Create a globalization liaison at the Board of Regents to attract and retain international students.

VETERANS

-- Fast-track state licensing and certification for veterans and their spouses.

-- Grant free college credit to veterans for military training and experience.

-- Allow veterans priority course registration and high-quality academic and career counseling.

OTHER

-- Establish state Human Services Innovation Office within Ohio Department of Job and Family Services.

-- Allocate $26.9 million from the national tobacco settlement to for tobacco prevention and cessation efforts.

-- Direct $6.5 million to new substance abuse prevention initiatives.

-- Streamline three federal workforce training programs to avoid overlap and ease use.

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SOURCE: Ohio Governor's Office