Lawmakers unveil $55B spending plan with just 1 day left to pass it
[May 31, 2025]
By Ben Szalinski and Jerry Nowicki
SPRINGFIELD — Illinois Democrats introduced what a leading budgeteer
described as a $55 billion budget Friday evening ahead of a Saturday
deadline to pass the fiscal year 2026 spending plan.
The 3,363-page spending proposal was unveiled after 6 p.m. At the time
the Senate’s lead budget negotiator, Sen. Elgie Sims, D-Chicago, briefed
reporters on the plan; an exact proposal for raising about $1 billion in
revenue to pay for it had not been made publicly available.
But Sims said lawmakers are not using broad tax hikes to balance the
budget, although the plan does call for specific tax increases in
certain areas. Sims said the proposal includes new taxes on gambling as
well as tobacco and vape products. He also hinted that some businesses
will pay more under the plan – though Illinois’ constitution mandates
that the state corporate income tax remain a flat rate.
“We’re trying to make sure that individuals pay their fair share, and
corporations, who are the most prosperous are most profitable, also pay
their fair share,” Sims said.
Later, in a House hearing on the spending plan, Democratic Rep. Robyn
Gabel, D-Evanston, said it relies upon $55.4 billion in revenue with
$55.2 billion in spending. But at several points the chamber’s budget
leaders declined to talk about revenue, noting that proposal will come
before the committee later, likely on Saturday.
The plan is roughly in line with what Gov. JB Pritzker proposed in his
February budget address as budget talks in Congress have injected
uncertainty in state finances.
“This budget recognizes that there are significant challenges that we
have, that we will face, and it makes sure that the chaos that is coming
out of Washington, we’re prepared for it,” Sims told reporters Friday
night. “We’re not running away from our responsibility. We’re running
towards it.”
A health care program that provides benefits to undocumented immigrants
in Illinois between ages 42 and 64 also appears to be eliminated.
Pritzker proposed eliminating the program to save the state $330
million.
“He did not include the HBIA (Health Benefits for Immigrant Adults)
program in the budget,” Sims said. “But again, that’s in recognition of
the challenges that we’re seeing coming out of Washington and the
devastating effects that those proposals are having on our state and
states across the country.”
Pritzker proposed a $55.2 billion spending plan in February, but revenue
forecasts have declined since then. The latest estimate in early May
from the governor’s office pegged FY26 revenue at $54.9 billion while
the General Assembly’s independent Commission on Government Forecasting
and Accountability projected revenue would come in at $54.5 billion – $1
billion below Pritzker’s February revenue estimate.
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State Sen. Elgie Sims, a Chicago Democrat and the Senate’s lead
budget negotiator, briefs reporters on the state budget Friday
evening. The $55 billion spending measure was filed late Friday —
one day before lawmakers were scheduled to adjourn. (Capitol News
Illinois photo by Andrew Adams)
Expected declines in federal funding and a diminishing economic outlook
have caused the downward revisions.
But the yet-to-be-filed revenue plan would make up a little over $1
billion in revenue, according to Sims.
Another source of new revenue in the budget proposal is a delinquent tax
payment incentive program. The program is designed to help the state
recuperate overdue tax payments. The program was proposed by Pritzker
and is estimated to generate about $198 million in revenue.
With Medicaid funding cuts possible from Congress, Sims said the budget
makes “significant” increases for the state’s hospital systems, in
particular safety-net hospitals. He said the plan also builds in wage
increases for direct service providers.
The state’s evidence-based funding model for K-12 schools calls for $350
million in additional funding each year, with a portion of that going to
a property tax relief fund and the rest directly to schools. The
proposed budget fully funds the K-12 education portion at $307 million
but does not add $43 million in property tax relief funds, according to
House Democratic leaders.
Republicans prodding House Democratic budget leaders for details during
a late-night hearing said pausing the grant fails to deliver benefits to
property owners.
“The taxpayers are begging and pleading for tax relief and then we put a
program on pause?” Rep. John Cabello, R-Machesney Park, said. “Maybe we
should look at all the different programs going to Democratic districts
and stop those for a little bit instead of telling the taxpayers that
there’s not going to be property tax relief.”
Republicans pressed on why House Democrats are set to get $1.5 million
of spending for their districts while Senate Democrats are expecting $3
million of spending on districting projects – although Democrats
wouldn’t confirm or deny those numbers.
Lawmakers will also see their salaries rise as part of the budget, going
to a $98,304 base salary from roughly $92,000. That’s an annualized rate
of increase that is set by law.
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