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* Capitol News Illinois has a solid budget story…
Gov. JB Pritzker signed Illinois’ fiscal year 2026 budget into law Monday, taking shots at President Donald Trump’s budget management to defend hard choices state lawmakers were forced to make this year.
The $55.1 billion spending plan set to take effect July 1 is the largest in state history and is supported by $55.3 billion in anticipated revenue, including more than $700 million in new taxes and more than $500 million in one-time revenues. […]
The budget’s passage came after months of discussion about closing an initially projected $3 billion deficit and growing concerns about Trump’s treatment of state funding in Washington. Pritzker, a possible 2028 presidential candidate, used Monday’s budget signing ceremony in Chicago as an opportunity to draw a contrast between his and Trump’s budgets. […]
Pritzker and other Democratic leaders acknowledged that crafting the FY26 budget was challenging but continues to make investments Democrats believe are priorities. Discretionary spending will increase by less than 1% in FY26, Pritzker said. Despite the minimal increase, the FY26 budget still spends about $2 billion more than FY25.
* Sun-Times…
Those decisions included some $400 million in cuts to state programs, with wholesale slashing of immigrant health care spending, while squeezing big corporations, online sportsbooks and nicotine users for more tax revenue.
But the state is still managing to increase K-12 education funding by $307 million, go beyond its required pension payment, add to the state’s “rainy day” fund and maintain “core investments for Illinois families, without raising their taxes,” Pritzker said.
“That’s hard to do while balancing the budget, but we did. Not everyone can say that,” Pritzker said before signing the budget package at a West Loop state office. “The Trump administration is spending wildly on tax cuts for their wealthy friends, while the Republicans in Congress are voting to gut health care and food assistance for working parents, for seniors and children.
“The Trump slump is affecting the entire nation,” Pritzker said. “You’re seeing red states and blue states across the country struggle this year, forced to grapple with lagging national economic growth estimates due to high tariffs and bad policy choices in Washington.”
* Some context from the Kaiser Family Foundation on the “Trump slump” Pritzker referenced…
Last month House Republicans passed a sweeping legislative package that combined tax cuts with other legislative priorities of President Trump. Known as the “One Big Beautiful Bill Act,” the tax and budget bill contains health care provisions which include significant changes to the Medicaid program and the Affordable Care Act (ACA). […]
While the legislation continues to be debated as the debate moves from the House to the Senate, the Congressional Budget Office (CBO) released their report estimating the legislation would increase the number of adults without health insurance by more than 10 million and reduce federal spending on Medicaid by almost $800 billion. In addition, several Republican Senators have said they oppose the provision in the House-passed legislation that freezes states’ provider taxes at their current rate and prohibits states from establishing new provider taxes because of the negative impact it may have on rural hospitals.
Reflecting these ongoing discussions, public attitudes towards the legislation are dynamic and can shift after hearing some of these details. For example, public support for the legislation drops 14 percentage points to 21% after hearing that the legislation would decrease funding for local hospitals. In addition, three-fourths of the public (74%) have an unfavorable view of the legislation after hearing that the bill would increase the number of people without health insurance by about 10 million.
On the other hand, hearing that the bill would reduce federal spending on Medicaid by more than $700 billion seemingly has no impact on public opinion with two-thirds still holding unfavorable views of the bill after hearing this.
* Crain’s…
Illinois would see a decrease in health care spending of $22.2 billion over 10 years under the budget reconciliation measure, the One Big Beautiful Bill Act, passed by the U.S. House and now before the Senate, according to an analysis by the Urban Institute and Robert Wood Johnson Foundation.
In addition to the impact to people on Medicaid and Affordable Care Act policies, the blow to hospital and other provider revenue will be drastic, the analysis predicts.
The Illinois breakdown among health care sectors shows hospitals in the state would see $9.2 billion less in the next decade, physicians would see a $2.2 billion decrease and federal payment for prescriptions would fall $5.2 billion, with another $5.7 billion split among other categories.
Of the $797 billion in reductions in the federal bill over the next decade, the report said, Illinois is one of nine states that would see a drop of more than $20 billion.
* Back to Capitol News Illinois for more on Illinois’ budget…
The largest sum of new taxes – $336 million – are on businesses outside of Illinois that lawmakers call “leveling the playing field” and will require businesses to pay more income tax to the state on their profits.
Consumers will face new taxes on specific items, including taxes on tobacco, vaping and other nicotine products, which are increasing to 45% to raise $50 million. An existing telecommunications tax will also rise from 7% to 8.65% and raise $49 million to fund the statewide 988 hotline.
A new tax on sports bets will charge betting sites 25 cents for the first 20 million wagers and 50 cents for each bet following that. It’s projected to raise $36 million. Sports betting sites FanDuel and DraftKings have both announced they will implement 50-cent transaction fees on Illinois customers in response to the tax.
Short-term rentals will have to begin paying the state’s hotel operator’s tax. The charge is already applied to hotels in the state, and Airbnb already pays it voluntarily, but more companies like Vrbo will now be required to pay the tax expected to raise an additional $10 million.
A pair of tax amnesty programs are expected to raise $228 million. Those programs are meant to incentivize taxpayers to pay overdue taxes.
* Tribune…
Barring a decision to convene this summer, state lawmakers aren’t scheduled to return to Springfield until their annual fall session, when they could address the transit fiscal cliff. Depending on the outcome of the federal budget currently being negotiated by Republican lawmakers in Washington, Illinois legislators may also need to discuss changes in federal funding to the state or impacts to Illinoisans, such as potential cuts to Medicaid.
The budget package signed by Pritzker after passage by Democratic allies in the legislature included funding for a number of capital projects. Despite the fiscal challenges, the plan includes $8.2 billion in new spending on infrastructure projects, which are separate from the operating budget and funded by dedicated taxes and borrowing.
Republicans, none of whom voted for the budget package, again complained that they received nowhere near the money for large projects accorded their colleagues across the aisle.
* More…
* Patch | Rep. Spain: Dem Budget Sets Table for More Tax Hikes: “The FY 26 state budget package was passed in the middle of the night after Democrats once again conspired behind closed doors. Their process was so opaque, the Democrats presenting the budget bills couldn’t even answer more than a dozen questions. How are the people of Illinois expected to trust that the government is spending their tax dollars wisely when the process is so lacking in transparency that even the sponsors don’t know critical information?
* WRAM | Hammond Statement on Gov. Pritzker’s Budget Signing: “The tax-and-spend budget that Governor Pritzker just approved is completely irresponsible. It’s a $55 billion budget that relies on $1 billion in new taxes and fund sweeps and hundreds of millions of dollars in Road Fund diversions. What’s in this budget? Pay raises for politicians. Nearly $250 million in pork projects for Democratic legislators aka the ‘Democratic Majority Slush Fund’ and an additional $100 million slush fund for the Governor.
* Center Square | Enacting largest IL budget ever with tax increases, Pritzker criticizes Trump: Meeting with the leader of the G7 Monday, President Donald Trump was asked about immigration enforcement and paused to criticize Pritzker. “I look at Chicago and you’ve got a really bad governor in Chicago, and a bad mayor, but the governor is probably the worst in the country, Pritzker,” Trump said.
* NBC Chicago | As Pritzker signs Illinois budget, here’s what’s in, what’s out and other notes: Pritzker used reduced appropriations in one of the budget bills as a corrective measure, saying that the amounts had been duplicated. That move reduced the amount of spending in the final budget agreement by just over $161 million. The series of bills also called for a deposit of $161 million in the state’s “rainy day” fund, which Pritzker says will contain nearly $2.5 billion by the end of the next fiscal year.
* Journal Courier | Governor signs next budget, JDC demolition money is included: Among many items in the budget is the inclusion of $300 million that will be split among five dilapidated, state-owned sites, including Jacksonville Developmental Center, which has been abandoned since 2012. Since its closure, the 134-acre property has been host to fires, vandalism and complaints about its appearance.
* Daily Herald | Illinois’ $55.2 billion budget ‘incomplete,’ Civic Federation president says: “It’s an incomplete budget,” Civic Federation President Joe Ferguson told Capitol News Illinois. “It does not add in any meaningful way to discuss any structural issues the state has. It’s a maintenance budget.” Ferguson said a key reason for that is at least $271 million in fund sweeps used to balance the general revenue fund. Fund sweeps occur when lawmakers dip into lesser-known and underutilized funds outside the main general fund to use as a source of revenue for the fiscal year. This year’s budget also pauses several transfers to keep certain dollars available in the general fund for use this year.
posted by Isabel Miller
Tuesday, Jun 17, 25 @ 11:48 am
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Elimination of sales tax on groceries still in budget?
Comment by Anyone Remember Tuesday, Jun 17, 25 @ 12:15 pm
Between fund sweeps, a bit of optimism, and not addressing the Chicago / Cook County transit funding problem, it’s an incomplete budget. Yes, it does a lot of right stuff in terms of cuts and establishing priorities, but it also relies on new revenues.
Could have been worse, could have been better. Should JB decide (or maybe just announce) a Presidential run, it will provide some fodder for his opponents on both the left and right.
But it’s probably the best budget that could be done this year.
Comment by RNUG Tuesday, Jun 17, 25 @ 12:17 pm
Just ask yourself: would you rather campaign as the party that passed the Illinois state budget or as the party that passed the US federal budget? You can peek at what the US House sent over before you answer.
Comment by Socially DIstant Watcher Tuesday, Jun 17, 25 @ 12:18 pm
====A new tax on sports bets will charge betting sites 25 cents for the first 20 million wagers and 50 cents for each bet following that. It’s projected to raise $36 million.====
Unless sports wagering bets plumet because of the tax the $36 million is way off. I know that is the number the gov’s office is using but there were 350 million bets last year. Even using just the 25 cent tax that would be $87 million. If bets stay similar to 2024 the tax revenue will be closer to $200 million.
Comment by Been There Tuesday, Jun 17, 25 @ 12:18 pm
As a higher ed employee whose union tied salary increases to state appropriation (don’t get me started), I have a question. Pritzker touts a 3% increase to operating funds based on his press release…but the legislature passed a 1% increase with a 2% contingent appropriation at the governor’s discretion (based on federal higher ed cuts from Trump budget).
So…is it a 3% increase this year or a 1% increase with a 2% contingency appropriation? Our contract says the appropriation has to be at least 2%. I’m confused…
Comment by Jvslp Tuesday, Jun 17, 25 @ 12:48 pm
“go beyond its required pension payment”
Now pensions can be taken off the table as some hair on fire emergency. The dooming and fearmongering are all in vain. If the Illinois misery people want to be fiscally conservative, they can start by not wasting any more of their money on negativity.
Comment by Grandson of Man Tuesday, Jun 17, 25 @ 12:50 pm
You sure don’t sound like a Chicago resident
The both chambers of the legislature passed unanimously enhanced pension benefits for Chicago Police and Fire (that are currently less than 22% funded) with zero revenue to pay for it
The CFO of the City of Chicago opposed this which will cost at least $50 million dollars next year adding to the 1 billion dollar deficit
If 22% funded isn’t a hair on fire emergency what is?
Comment by Paul Powell Tuesday, Jun 17, 25 @ 1:10 pm
==go beyond its required pension payment==
Statutorial, not actuarial.
Comment by City Zen Tuesday, Jun 17, 25 @ 2:34 pm
===Statutorial, not actuarial.===
If Illinois goes right now to “actuarial” instead of staying with Edgar Pension Ramp, it has given away budgetary control to the “academic accountants” at GASB. You know [sarcasm font only slightly on], the people who will not rest until there are no pension plans, just employer contribution assisted 401(s) / IRAs and 67 year old fire fighters & police officers …
.
Comment by Anyone Remember Tuesday, Jun 17, 25 @ 4:25 pm