ILLINOIS — Illinois’ newly passed $55.2 billion budget for fiscal year 2026 is facing sharp criticism from one of the state’s top independent fiscal watchdogs, who warns the spending plan relies on short-term fixes and fails to address long-term challenges.
The budget, approved by the legislature on May 31 and now awaiting Gov. JB Pritzker’s signature, raises $1 billion in new revenue while increasing overall spending by more than $2 billion compared to last year. But critics say it’s a “maintenance budget” built on shaky ground.
Fund Sweeps, Paused Transfers Raise Red Flags
Joe Ferguson, president of the Civic Federation, called the FY26 budget “incomplete” for avoiding structural reforms and leaning too heavily on temporary revenue tactics, like:
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$271 million in fund sweeps from underused or obscure accounts
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Suspension of a $45 million rainy day fund deposit
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Pausing a $171 million transfer of motor fuel tax revenue to the road fund
“This was not the moment to go to that well,” Ferguson warned. “We are likely going to need that funding when dealing with future transit and federal policy shifts.”
Gov. Pritzker defended the plan, claiming the state has made significant strides in narrowing the structural deficit since he took office in 2019.
“We’re diminishing the one-time expenditures,” he said.
New $100M Emergency Fund, But Uncertain Future
The budget also grants Pritzker discretion over a new $100 million emergency fund to address unexpected fiscal issues. But Ferguson questioned whether that flexibility is enough to withstand potential shocks.
With Congress pushing a Trump-supported domestic policy bill that could cut Medicaid and transfer more financial burdens to states, Illinois lawmakers are bracing for turbulence.
“We’ve told the caucus to stand on the ready,” said House Speaker Chris Welch.
House Budget Chair Kam Buckner added:
“It’s hard to prepare when you don’t know exactly what’s coming down the pipe.”
Republican Skepticism, Lawsuit Over Budget Procedure
While some Republicans downplayed federal risk, others voiced concern about how the budget was passed.
Democrats introduced a 3,300-page spending plan with only 24 hours for review, and the $1 billion tax proposal was filed five hours before the vote.
The Illinois Freedom Caucus has filed a lawsuit alleging the process violated the state constitution’s “three readings” requirement, since amendments were added in the final hours.
But legal experts note that Illinois courts have repeatedly upheld the legislature’s broad authority to amend bills at the last minute — citing the “enrolled bill doctrine”.
What’s Next For Illinois’ Budget?
With spending boosted for health centers and safety net hospitals, Illinois’ budget looks solid on paper. But watchdogs say the true test will come if federal cuts materialize or economic downturns hit.
“This was chaotic and nontransparent,” Ferguson concluded. “Not how we want to conduct public business.”
Should Illinois stop relying on fund sweeps and start planning long-term? Did lawmakers act responsibly or recklessly in rushing this budget?
Join the debate now at ChicagoSuburbanFamily.com.
