SPRINGFIELD, Ill. (Capitol News Illinois) – 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.
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 cuts $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.
By BEN SZALINSKI & JERRY NOWICKI – Capitol News Illinois
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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