* The Governor’s Office of Management and Budget…

Following Governor JB Pritzker’s Executive Order directing state agencies to prepare for federal economic disruptions, the Governor’s Office of Management and Budget (GOMB) today released its FY26 budget reserves list, identifying funds within the current FY26 enacted budget that agencies have been directed to reserve to help mitigate fiscal risk, amid ongoing economic uncertainty driven by the Trump Administration.

Last September, Governor Pritzker directed state agencies to identify up to 4% of their FY26 General Funds appropriations to be reserved as a safeguard against potential federal funding changes and broader economic risks. The Governor’s Executive Order also directed agencies to begin limiting non-essential spending, purchases, and travel, prioritizing only essential roles for hiring. ​

The list released today reflects $481.6 million in FY26 General Funds reserves that state agencies identified to help maintain stability in Illinois’ budget and across multiple areas of state government. Savings were achieved through administrative efficiencies, staffing adjustments, lower-than-expected caseloads, and cost controls, reflecting responsible fiscal management without reducing essential services. No funding for pensions or K–12 education was impacted.

Breakdown of FY26 Reserves:

- Healthcare & Human Services – $361.5M
- Higher Education – $30.5M
- Public Safety – $22.1M
- Economic Development, Environment & Culture – $10.3M
- Government Services – $57.2M

* From the memo sent to the state’s agency directors…

* Capitol News Illinois…

Most of the reserves were earmarked for health care and human services. The Department of Healthcare and Family Services will forgo transferring $200 million to the Healthcare Provider Relief Fund because the fund will have enough to make it through the fiscal year without the additional money, the official said.

Pritzker’s administration also does not plan to release $29.5 million in funding for higher education that was already reserved in the budget. The budget called for increasing spending for higher education by 1%, while giving the governor authority to release an additional 2% should the state’s financial picture become less cloudy.

Advocates have called on the governor to release that funding, citing financial issues some state universities are facing.

[Pritzker’s budget director’s] memo noted another $10.3 million in reserves through grant reductions and other measures at the Department of Commerce and Economic Opportunity, as well as environment and culture agencies like the Department of Agriculture and the Illinois Arts Council.

The state will also reduce operational expenses by limiting overtime and travel expenses and leaving vacancies unfilled at certain agencies. Another $50 million would come from group health insurance savings.

Major spending areas such as K-12 education and pensions were not subject to the September executive order or the recently announced reserves.

Thoughts?

…Adding… Earlier this week, University Professionals of Illinois President John Miller criticized the Illinois Board of Higher Education for recommending a “sham” budget: “Board members claim to be requesting a 3% increase, but that is misleading. In reality, their recommendation is just a 1% increase over what was appropriated – but not released by Governor Pritzker – in the current fiscal year (FY 26).”

Miller, who is also the Membership Secretary for the Illinois Federation of Teachers, released this to us today…

“It is deeply disappointing that the governor is doubling down on his refusal to release the critical funds he has been withholding from our colleges and universities. The best way to Trump-proof education and essential services in Illinois is to invest in our institutions and programs to make them stronger, not continue to starve them of essential funding. The problems caused by state underfunding began long before the current president’s term and harmful cuts, and they will only get worse if the governor does not commit now to making the needs of students and Illinoisans an investment priority.”