COLUMBUS, Ohio (WCMH) — Gov. Mike DeWine announced his draft for the state budget this week. Although he has publicized major changes and his priorities — including child care and tax changes — the nearly 600-page proposal included much more.
In Ohio, the governor makes budget recommendations early into each new General Assembly’s operation using insight from state agencies and knowledge of federal funding plans. Throughout spring, the Ohio House and Senate will consider budget bills and work out the details before a final budget is enacted on July 1. DeWine’s plan will be drafted into a bill but will see changes before the budget is finalized. See previous coverage of DeWine’s budget in the video player above.
In the budget draft, DeWine detailed his recommendations for each state sponsored agency and commission in a line by line plan. This plan included recommendations for fiscal year 2026 and FY 2027, and provided context for what was spent on each project since FY 2022.
Less funding for equity-focused projects
DeWine’s draft decreased several budgets for diversity or civil rights grants and spending. The Minority Business Bonding Program Administration, for instance, would lose more than 90% of its funding under this proposal, dropping from $100,000 of support in FY 2025 to less than $10,000.
The state Civil Rights Commission would lose several hundred dollars in funding in FY 2026. Although it will rise again in FY 2027, there is still a decrease from this year’s allotment and the FY 2027 funding. The Commission on Hispanic/Latino Affairs had its special initiatives budget cut by more than half, and the commission lost 16.1% of its previous funding overall, without listed explanation. The Commission on Minority Health will lose around $150,000 in funding in DeWine’s plan.
However, plenty of minority-focused initiatives remained consistent or increased in small increments on par with other budget items. The New African Immigrants Commission, for instance, saw no change in its operational funding.
Sealing marijuana possession offenses
DeWine’s budget would allocate around $12.5 million in FY 2026 and $14.25 million in FY 2027 to fund the expungement of marijuana possession offenses. Through this program, the state will help cover the costs of sealing marijuana offense records for Ohioans who were charged with cannabis possession before recreational marijuana was legalized in the state.
The multimillion-dollar program would be funded through nonmedical marijuana sales tax revenue, a new source of income for Ohio after recreational sales began in August 2024. In April 2024, some lawmakers considered a bill that would expunge marijuana possession crimes, but it did not come to fruition.
Under Ohio law, residents can already apply for expungement, but DeWine’s proposal would help cover the costs. Currently, it costs a $50 filing fee plus court costs to seal a marijuana possession misdemeanor.
Investing in the ‘Third Frontier’
Under DeWine’s plan, relevant state commissions and agencies are encouraged to support Third Frontier research. According to the Department of Development, the Third Frontier is an economic initiative that works with startups across the state and aims to make Ohio a destination for technology entrepreneurship.
Research and development funding for the Third Frontier increased by 400% under DeWine’s proposal. The department will also be able to award Entrepreneurial Service Provider grants in 2026 to incentivize growth in Ohio tech fields.
Although Third Frontier targets small, local innovation, Ohio is already on the map for its recent surge in tech development. Many major technology hubs like Intel, Microsoft and Amazon have flocked to the state to build data centers and manufacturing facilities.
Increased funding for community schools
DeWine said a priority for the budget was children and schooling, and the budget proposal shows a particular emphasis on funding for community schools. Community schools, dubbed charter schools in most other states, are independent schools that families can choose to participate in through state and federal funding.
Community schools and choice programs would receive an increase in both fiscal years in the budget, raising to $4,370,165 in FY 2026 and to $4,446,705 in FY 2027. Currently, the budget allots $4,232,000. DeWine also increased funding for community school facilities by 50.4% in its first year, doubling the funding at $133,155,000 annually. He said this was due to the average cost per pupil increasing from $1,000 to $1,500.
DeWine’s proposed budget would increase funding for the Ohio School Sponsorship Program by 52%, increasing annual funding to $1.9 million. The Ohio School Sponsorship Program is an office within the Department of Education and Workforce that directly sponsors community schools.
More money for oil and gas
In a combination of state and federal funds, oil and gas extraction will receive a hefty increase in funding. The largest increase in oil and gas funding is from federal funds, which are recommended to increase by a whopping 12,928.8%.
Since FY 2022, Ohio has averaged around $150,000 per year in federal oil and gas funding, increasing by about $5,000 each fiscal year. For FY 2026, this would increase to more than $20 million in funding under DeWine’s proposed budget. Senator Bernie Moreno represents Ohio and promised to tap into Ohio’s natural gas resources and lift up oil refineries to improve energy costs while campaigning.
Oil and gas are extracted through hydraulic fracturing, commonly known as fracking. Critics of fracking say the process can harm nearby residents, and those in favor say it is a reliable energy source. According to Statista, Ohio placed 11th in crude oil production in 2023 nationwide, contributing 30.7 million barrels of oil. Ohio is even more prominent in dry natural gas production as it sits on the Marcellus and Utica shales, one of the richest natural gas reserves in the world.
Funding for pregnancy resource centers
DeWine’s budget included several investments into parenting, safe births and alternatives to abortion. He said he would invest in community and faith-based organizations that support moms-to-be and budding families.
As part of this commitment, DeWine increased support for the Parenting and Pregnancy Program by 42.9%, raising annual funding from $7 million to $10 million annually. According to Ohio law, investments under this program go to services for pregnant women who promote childbirth rather than abortion.
Although Ohio codified abortion in 2023 through a Constitutional amendment, this funding cannot be used for abortion services. To receive funding under the Parenting and Pregnancy Program, organizations must be private non-profits that provide services to parents and pregnant women. They must also be entirely separate from any entity that engages in abortion activities, including counseling or referrals to abortion clinics or advertising in pro-abortion ways.
Decreased funding for broadband equity
Several broadband projects saw decreased or eliminated funding under DeWine’s new plan. Broadband refers to high-speed internet, and allows people to connect with others through cell service, Wi-Fi or plugged-in options. According to DeWine’s office, nearly one million Ohioans face a critical barrier in lacking access to high-speed internet.
Two broadband grant programs lost funding entirely, and the Digital Equity Acts Program lost nearly $7 million in funding or 20.7%. DeWine said BroadbandOhio has already announced a $94.5 million investment that will provide access to more than 35,000 households, which may have contributed to decreased funding.
An extreme outlier was a significant increase in broadband pole replacement and undergrounding, which increased by 169,603.5% for FY 2026 before losing all funding for FY 2027. The Broadband Equity, Access and Deployment Program (BEAD) also received a large increase, which was attributed to a one-time federal award. DeWine said in FY 2027, it will halt entirely, ending what has been a multi-million dollar program for several years.
You can read the full budget proposal here.