Illinois lawmakers approved a $55.9 billion state budget early this (Monday) morning after an overnight session at the Capitol. The spending plan is slightly smaller than Governor JB Pritzker’s original proposal and includes several new taxes aimed at balancing the budget.
Democrats say the plan prepares Illinois for potential federal funding cuts and economic uncertainty, while Republicans criticized the budget for relying on tax increases and last-minute negotiations.
The budget includes new taxes on social media companies, digital assets, fantasy sports, sports betting prediction markets, tobacco retailers, and certain corporate tax deductions. Lawmakers also approved a 50-cent increase in the tire disposal fee.
To provide some consumer relief, the budget delays a scheduled gas tax increase until January and creates a sales tax holiday on school supplies from August 7th through August 16th.
The spending plan fully funds K-12 education under Illinois’ Evidence-Based Funding formula and maintains pension funding. It also creates a one-year emergency food assistance program for residents who lose federal SNAP benefits.
The budget passed largely along party lines, with no Republican votes in support. The legislation now heads to Governor Pritzker for his signature before the new fiscal year begins July 1st.