Illinois budget officials have trimmed revenue projections for the next fiscal year amid rising concerns about the global economy. Both the governor’s office and legislative analysts cut their estimates by less than 1%, signaling caution just weeks before lawmakers must finalize a state budget.
Deputy Governor Andy Manar said the changes are minor but highlight the need for fiscal discipline as economic and geopolitical uncertainty grows. Revised GDP projections and concerns over global events, like conflict in Iran, have contributed to the cautious outlook.
The governor’s office now expects $55.9 billion in revenue for FY27, $149 million less than proposed spending, assuming lawmakers approve new revenue measures like a tax on social media companies. Sales tax growth has slowed, inflation is up, and unemployment is rising, all adding pressure to the budget process.
Lawmakers are set to finalize the budget by May 31, with officials warning that spending increases will be limited amid continued economic uncertainty.