SPRINGFIELD, IL – With just one day left in the legislative session, Illinois lawmakers have introduced a $55 billion spending proposal that includes targeted tax increases, new revenue initiatives, and controversial spending cuts—all while avoiding broad-based tax hikes.
The 3,363-page budget was unveiled Friday evening by Senator Elgie Sims, the Senate’s lead budget negotiator. The proposal attempts to balance falling revenue forecasts without triggering sweeping tax hikes—opting instead for increased taxes on gambling, tobacco, vape products, and a delinquent tax payment program designed to raise $198 million.
What’s in the New Budget?
- No broad income tax hike, but higher taxes on certain products and business segments
- Elimination of healthcare program for undocumented immigrants aged 42–64, saving an estimated $330 million
- $350 million increase in K–12 education funding through the state’s evidence-based model
- Boosted support for safety-net hospitals in light of potential federal Medicaid cuts
- Legislator salary increases to $98,304 from ~$92,000 annually
“We’re not running away from our responsibility. We’re running toward it,” said Sen. Sims, referencing economic uncertainty from Washington.
Past Budget Context
Earlier this year, Governor JB Pritzker proposed a $55.2B budget, but revenue projections have since declined. As of May, estimates ranged between $54.5B–$54.9B, falling short of the Governor’s February forecast by up to $1 billion.
To address this gap, lawmakers have turned to targeted revenue sources—including late tax recovery programs and product-specific levies—while staying within constitutional limits on flat corporate tax rates.
What Could Happen Next?
- The budget must pass by Saturday to meet the legislative deadline
- Lawmakers still need to finalize and pass a revenue bill to fund the spending proposal
- If unresolved, parts of the state’s operations and services could face delays or cuts
Governor Pritzker has previously stated he would veto any budget with a broad-based tax increase, signaling that final compromises will be carefully scrutinized.
“This budget reflects the reality we’re facing from Washington’s chaos,” said Sims. “It prepares us for instability without abandoning essential services.”
Do you support the targeted tax increases and program cuts proposed in this plan? How do you think Illinois should balance its budget in tough times? Join the discussion in the comments.
Stay connected with ChicagoSuburbanFamily.com for real-time updates on Illinois policy, budget, and citywide impacts.
