In Springfield Wednesday, Illinois Governor JB Pritzker’s state of the state and budget address revealed an improved revenue forecast that alleviates financial pressures on Illinois, allowing for a proposed budget of $55.2 billion for fiscal year 2026. This plan includes a 3% spending increase, supported by a corresponding rise in state revenue to $55.5 billion, reflecting a more favorable economic outlook than previously projected.
Pritzker’s budget avoids tax increases for residents but suggests a tax hike on certain casino profits. A major change involves eliminating healthcare benefits for low-income noncitizens aged 42 to 64, while maintaining benefits for seniors aged 65 and older, which will cost $132 million.
Despite overall spending increases, most areas of the budget will see little growth, with significant funding directed toward education and healthcare. The budget allocates $350 million for the Evidence-Based Funding formula for education, bringing total funding to $8.9 billion.
Pritzker also plans to increase staffing at the Department of Children and Family Services and proposed $7.9 billion for the Department of Human Services. However, there are no new funds for public transportation amid a $700 million shortfall faced by Chicago-area transit agencies.
The governor’s proposal emphasizes a balanced budget while preparing for uncertain federal funding under the Trump administration. Lawmakers will need to reach an agreement on the spending plan by the end of May.
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