Highlights of Ohio Gov. Kasich's budget proposal

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Highlights of Ohio Gov. John Kasich's two-year budget:

— TAX CUTS: Reduces small business taxes by 50 percent, cuts state income tax by 20 percent over three years, and decreases sales tax from 5.5 percent to 5 percent.

— TAX INCREASES: Places taxes on professional services such as lawyers and accountants, and increases tax on large-volume oil and gas drillers.

— MEDICAID EXPANSION: Expands Medicaid health care coverage for poor under the new federal health law, making 365,000 more Ohioans eligible.

— HIGHER EDUCATION: Puts higher priority on number of students who graduate from public colleges and universities by tying half of state funding to graduation rates, delivering combined $4.7 billion over the biennium.

— PRIMARY AND SECONDARY EDUCATION: Gives extra $1.2 billion to public school districts, eases disparities in revenues from local property tax levies, and offers more money to districts based on number of poor, special-needs, gifted and college-bound students.

— HIGHWAYS: Creates up to $3 billion for road and bridge projects mainly through bond sales backed by future Ohio Turnpike toll revenues.

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