The Ohio House Finance Committee is dropping Gov. Mike DeWine’s proposed tax increases on cigarettes, marijuana, and sports gambling from the state’s budget bill.
CLEVELAND — Ohio lawmakers are reportedly set to authorize $600 million in bonds for a new Cleveland Browns domed stadium in Brook Park as part of the state’s budget which will be voted on in the coming months.
Jeremy Pelzer of 3News media partner Cleveland.com reports that the Ohio House Finance Committee will likely soon add language to the massive budget legislation to authorize $600 million in state-backed bonds to help pay for the new stadium, according to Finance Committee Chair Brian Stewart, a Pickaway County Republican.
Conversely, the committee is planning to drop Gov. Mike DeWine’s proposed tax increases on cigarettes, marijuana, and sports gambling from the state’s budget bill.
During his rollout of the budget for fiscal years 2026-27 last month, DeWine announced his plan to double the sports gaming tax in Ohio to 40%, creating the Sports Facilities Construction and Sports Education Fund to help pay for the construction/renovation of the state’s professional sports facilities.
“The way the state has historically assisted these facilities means that that money competes for dollars with education, mental health, and many other vitally items in our budget, vitally important things. We now, with the budget I presented to you, have an opportunity to stop using our general fund dollars to build or renovate ballparks and stadiums,” DeWine said Wednesday during his State of the State address.
According to Pelzer’s report, Stewart said the tax increases are set to be removed by the House Finance Committee either next week in an initial round of budget bill changes, or in two weeks when the committee makes additional revisions. Pelzer added that Stewart and other House leaders say they hope to pass the budget bill by mid-April, after which it goes to the Senate for additional changes.
As Pelzer notes, the tax hikes on recreational marijuana and cigarettes were to pay for, respectively, a $1,000-per-year child income-tax credit and funding for things like police training and local jails. The removal of DeWine’s tax proposals, Stewart said, reflect unease among House Republicans — who hold almost two-thirds of House seats — with raising taxes.
‘UP-FRONT CASH’
Last month, the Browns shared details of their plan to finance the $3.4 billion economic development project near Cleveland Hopkins International Airport, which features a $2.4 billion domed stadium along with a mixed-use development.
Team owners Jimmy and Dee Haslam, along with their development partners, have committed to invest more than $2 billion in private capital. The state of Ohio would be asked to issue $600 million in bonds that would be paid back by tax revenues, while the city of Brook Park and Cuyahoga County would be asked for an additional $600 million in bonds to be covered by an increased admissions tax, parking tax, bed tax and rental car surcharge.
During a hearing of the House Arts, Athletics and Tourism Committee on Tuesday, Haslam Sports Group Chief Administrative Officer and General Counsel Ted Tywang announced that the Browns are prepared to offer “up-front cash” to help alleviate any concerns about issuing $600 million in bonds toward a new domed stadium in Brook Park.
The up-front cash would be $38 million, which Tywang explained was the “present value of $150 million at the back end of the lease. That’s your collateral.”
He added that the team’s funding plan is so unprecedented, it may require rewriting Ohio state law.
“What we’re proposing is a new, enabling statute,” Tywang explained to lawmakers. “A change to the Ohio revised code that would add for, it’s a mouthful, transformational sports mixed-use development districts. An ability to seek more state support, really just asking the state to lend us your balance sheet.”
The Haslam Sports Group is projecting that the project will generate $2.9 billion in state tax revenues over the initial 30-year lease term. They also note that the proposal allows for a cushion of more than $1 billion in case their projected revenue falls short in Brook Park.