Ohio State Government Powers, Limits, and Budget Explained
When people think about government power, they often picture Washington, D.C. But the truth is, Ohio’s state government has just as much influence over our daily lives—sometimes more. And while many representatives insist their hands are tied, the evidence tells a different story.
✅ What Powers Does the State of Ohio Have?
Before we talk about limits, it’s worth recognizing just how much power Ohio’s government actually holds. From the classrooms where our kids learn, to the hospitals we rely on, to the roads we drive every day, state decisions ripple through nearly every corner of daily life. These aren’t abstract policies—they’re choices that shape whether our communities thrive or struggle.
Education funding and policy: The Ohio General Assembly sets school funding formulas, curriculum standards, and teacher licensure rules.
Healthcare access: The state decides whether to expand Medicaid, regulate hospitals, and fund public health programs.
Transportation and infrastructure: From roads to public transit, Ohio’s budget determines what gets built and maintained.
Criminal justice and policing: State laws shape sentencing, prison funding, and police oversight.
Voting laws: Ohio lawmakers set voter ID rules, early voting access, and how districts are drawn.
These powers come from the Ohio Constitution, which gives the state control over anything not explicitly reserved for the federal government.
🚫 What Powers Are Off‑Limits for Ohio?
Of course, state power has boundaries. For every area where Ohio lawmakers can act, there are guardrails set by the U.S. Constitution and federal law.
It can’t override federal civil rights protections (though it can expand them).
It can’t set immigration policy or control international trade.
It can’t print money or set national economic policy—that’s the Federal Reserve and Congress.
It can’t control Social Security or Medicare, which are federal programs.
Still, Ohio can choose to invest in or divest from programs that support working families, public health, and education—so when state leaders say “our hands are tied,” it’s worth asking: By whom?
💰 How Does Ohio’s State Budget Work?
If power is the engine, the budget is the fuel. Every decision about schools, healthcare, or infrastructure ultimately comes down to dollars and cents. Ohio’s biennial budget is more than a spreadsheet—it’s a moral document that reveals what our leaders value most.
Ohio’s budget is a two-year plan (called a biennium) that runs from July 1 to June 30 of the second year. The governor proposes it, and the legislature debates and passes it.
Every dollar spent must be approved by law—no exceptions.
Main sources of revenue:
Income tax (paid by individuals)
Sales tax (on goods and services)
Federal funds (especially for Medicaid, education, and infrastructure)
Fees and licenses (e.g., hunting, driving, business)
Main spending areas:
K–12 education (about 40% of the General Revenue Fund)
Medicaid and health services
Corrections and public safety
Higher education
Transportation and infrastructure
Policy Matters Ohio explains that “the money in Ohio’s budget belongs to all of us, and every Ohioan should have a voice in how we spend it”.
🏥 What Is Medicaid Expansion in Ohio?
Healthcare is where the lines between state and federal power blur most. The Affordable Care Act gave states the choice to expand Medicaid—and Ohio’s decision in 2014 reshaped access to care for hundreds of thousands of residents. This is a vivid example of how state choices, backed by federal dollars, can transform lives.
The Affordable Care Act (ACA) gave states the option to expand Medicaid to cover more low-income adults. Ohio chose to expand in 2014. Today, over 760,000 working-age Ohioans are covered through expansion.
Key facts:
Expansion covers adults earning up to 138% of the federal poverty level (about $21,600/year for one person).
The federal government pays 90% of the cost; Ohio pays the rest.
Medicaid helps fund mental health care, addiction treatment, and rural hospitals.
But new federal rules and state proposals could add work requirements—meaning some people may lose coverage if they don’t meet monthly job or volunteer hours.
🌟 How Does Ohio Compare to Other States?
Finally, it helps to look beyond our borders. Ohio isn’t alone in facing challenges, but other states have made bold choices that show what’s possible. Comparing policies reveals a simple truth: outcomes improve when leaders invest in people, not just balance sheets.
Michigan expanded Medicaid early and invested in rural hospitals, helping reduce uninsured rates and improve health outcomes.
The state also launched the Rural Health Transformation Program to stabilize rural hospitals.
Pennsylvania increased school funding through a fairer formula, reducing gaps between wealthy and poor districts.
In 2023, a Commonwealth Court ruled the state’s funding system unconstitutional, forcing lawmakers to act.
In 2024, education officials detailed a $1B plan to implement fairer funding across districts.
Wisconsin passed redistricting reforms and boosted voter access, improving trust in elections.
In February 2024, Gov. Tony Evers signed new legislative maps into law, ending years of gerrymandering lawsuits.
Analysts later noted that these fairer maps laid the groundwork for a bipartisan 2025 budget compromise that included new spending on education and child care.
These states are similar in size, economy, and demographics—but they’ve chosen to invest in people, not just business rankings.
Values Set Priorities
As Ohio heads into 2026, the stakes couldn’t be clearer. The state government has enormous power to shape our schools, healthcare, infrastructure, and democracy. The real question for voters isn’t just what Ohio can or cannot do, but what Ohio chooses to do with the authority it has.
When leaders claim their hands are tied, remember: the Constitution sets limits, but values set priorities. Other states prove that bold choices can expand opportunity and fairness. The challenge for Ohio is whether we’ll demand the same, whether we’ll insist that our budget, our policies, and our future reflect the needs of all Ohioans.
❓ Frequently Asked Questions About Ohio’s State Government
Q: What areas does Ohio’s government control directly? Ohio lawmakers set policies on education funding, healthcare programs like Medicaid, transportation and infrastructure projects, criminal justice and policing, and voting rules.
Q: What powers are reserved for the federal government instead of Ohio? Ohio cannot override federal civil rights protections, set immigration policy, regulate international trade, print money, or control federal programs like Social Security and Medicare.
Q: How does Ohio’s budget process work? Ohio passes a two‑year budget (biennium). The governor proposes it, the legislature debates and approves it, and every dollar spent must be authorized by law.
Q: What are Ohio’s main sources of revenue? The state relies on income tax, sales tax, federal funds (especially for Medicaid, education, and infrastructure), and fees/licenses such as hunting permits, driver’s licenses, and business registrations.
Q: How did Medicaid expansion affect Ohioans? Since 2014, Ohio’s Medicaid expansion has covered over 760,000 working‑age adults, with the federal government paying 90% of the cost. It supports mental health care, addiction treatment, and rural hospitals.
Q: Can Ohio expand rights beyond federal protections? Yes. While Ohio cannot weaken federal civil rights, it can pass laws that expand protections—for example, stronger anti‑discrimination measures or broader voting access.
Q: How does Ohio compare to other states? States like Michigan, Pennsylvania, and Wisconsin have made different choices—expanding healthcare access, reforming school funding, and improving voting fairness. These examples show Ohio has room to innovate.
