{"id":11262,"date":"2025-06-01T14:42:21","date_gmt":"2025-06-01T19:42:21","guid":{"rendered":"https:\/\/www.thexradio.com\/news\/?p=11262"},"modified":"2025-06-01T14:42:21","modified_gmt":"2025-06-01T19:42:21","slug":"state-budget-passes","status":"publish","type":"post","link":"https:\/\/www.thexradio.com\/news\/local-news\/11262-state-budget-passes\/","title":{"rendered":"State Budget Passes"},"content":{"rendered":"
\"image_print\"Print<\/span><\/a><\/div>

By BEN SZALINSKI<\/span>
\n<\/span>& JERRY NOWICKI<\/span>
\n<\/span>Capitol News Illinois<\/span>
\n<\/span>news@capitolnewsillinois.com<\/span><\/a><\/p>\n

SPRINGFIELD \u2013 Giving almost no time for public review, Illinois Democrats pushed through a $55.2 billion budget for next fiscal year late Saturday, bolstering coffers with new taxes on sports bets, nicotine products and businesses.<\/span><\/p>\n

The $55.2 billion spending plan is supported by $55.3 billion of revenue, including just over $1 billion in new taxes and revenue changes.\u00a0<\/span><\/p>\n

The four bills making up the budget and capital spending plan, were part of a flurry of thousands of pages of legislation that went from introduction to passage in the final 48 hours of the legislative session.\u00a0<\/span><\/p>\n

The budget marked a roughly 3.9% spending increase from the current year, while Republicans criticized it for containing few cuts. It raises about $500 million more in new revenue than what Gov. JB Pritzker proposed in February to make up for declining base revenues.\u00a0<\/span><\/p>\n

The minority party also aired frustration with supermajority Democrats for providing next to no time for public review of the massive spending plan and other major bills.<\/span><\/p>\n

\u201cWe\u2019re rushing this process like we always do. \u2018Let\u2019s hide this stuff. Let\u2019s hide it so that the public doesn\u2019t see it until it\u2019s too late,\u2019\u201d Rep. John Cabello, R-Machesney Park, said.\u00a0<\/span><\/p>\n

Democrats said it was the best budget they could manage in a difficult year. To address potential uncertainties stemming from federal policy changes, they gave the governor authority over a new $100 million \u201cemergency\u201d fund. And they frequently lobbed criticisms at President Donald Trump and Republicans in Congress.<\/span><\/p>\n

\u201cI am very pleased to be able to present a balanced budget crafted to be fiscally and socially responsible, because we see the decisions made in Washington right now are neither,\u201d House Majority Leader Robyn Gabel, D-Evanston said. \u201cErratic leadership in Washington has affected our economic outlook, our revenue projections, and even threatened federal funding for our most crucial services.\u201d\u00a0<\/span><\/p>\n

The GOP also took issue with the tax increases, although the measure did not raise or create new sales, income or service taxes.<\/span><\/p>\n

Instead, the measures expand state taxes on foreign and out-of-state income for businesses, raise tax rates on tobacco, vapes and sports gambling, and sweep fund balances from several lesser-known and utilized state funds.\u00a0<\/span><\/p>\n

The spending measure, <\/span>Senate Bill 2510<\/span><\/a>, passed the House 75-41 just before 10 p.m. The Senate followed around 11:30 p.m. with a 34-23 vote. The revenue and tax changes, <\/span>House Bill 2755<\/span><\/a>, and the budget implementation bill, <\/span>House Bill 1075<\/span><\/a>, both passed with relative ease before the constitution\u2019s midnight deadline and only Democratic votes as well. Gov. JB Pritzker issued a statement saying he would sign it.\u00a0<\/span><\/p>\n

Another spate of tax increases included in a transit governance overhaul bill surfaced late but sputtered. The failed measure would have added a $1.50 fee on food and package deliveries and taxed electric vehicle charging statewide among other changes. Talks on that bill could resume later this year.<\/span><\/p>\n

New taxes on vaping, gaming, deliveries\u00a0<\/b><\/p>\n

The revenue bill creates a tax of 25 cents per wager for a sports betting licensee\u2019s first 20,000 wagers accepted, and 50 cents per wager after that.\u00a0<\/span><\/p>\n

Consumers will also see new taxes on tobacco products. The tax rate will rise to 45% from 36%. Vape products and nicotine pouches would also now be included under the tax.<\/span><\/p>\n

The revenue plan amends state law to tax sales from all businesses that transact in the state, rather than only businesses with a physical presence in Illinois. The plan also eliminates a \u201csafe harbor\u201d exemption for businesses that move money outside the state.\u00a0<\/span><\/p>\n

Businesses that move profits to other countries would also be subject to the state\u2019s corporate income tax. The federal government currently taxes half of income moved offshore and Illinois would tax the other half under the revenue plan.\u00a0<\/span><\/p>\n

Businesses outside Illinois that sell $100,000 or more to people in the state must also collect Illinois sales taxes even if the business doesn\u2019t have a physical location in Illinois. This would apply to businesses like Amazon.<\/span><\/p>\n

\u201cI will not support this betrayal of hard-working Illinoisans,\u201d Sen. Don DeWitte, R-St. Charles, said. \u201cAnd if you care about the people who sent you here, if you truly represent them, you\u2019ll vote no too. Enough is enough. It\u2019s time for this body to stand with taxpayers, not stand up against them.\u201d<\/span><\/p>\n

Another source of new revenue is a delinquent tax payment incentive program designed to help the state recuperate overdue tax payments. It will generate $228 million, Rep. Will Guzzardi, D-Chicago, said.<\/span><\/p>\n

The state would also pause the final transfer of motor fuel sales tax revenue to the road fund in order to free up $171 million, according to the governor\u2019s office\u2019s estimate.\u00a0<\/span><\/p>\n

A <\/span>separate bill designed to lower prescription drug prices<\/span><\/a> calls for levying a fee on pharmacy benefit managers based on the number of patients they insure. Money from that fee would go into a fund for the Department of Commerce and Economic Opportunity to award up to $25 million a year in grants to independent pharmacies and pharmacies located in rural counties. The remaining money would go to the state’s general revenue fund.<\/span><\/p>\n

The measure also extends the state\u2019s Hotel Operators\u2019 Occupation Tax to short-term rentals like Airbnb and Vrbo.<\/span><\/p>\n

Immigrant health cuts<\/b><\/p>\n

A controversial program that provides health insurance to more than 30,000 noncitizens between ages 42 and 64 will be cut in FY26. The program\u2019s elimination saves the state $330 million, but a $110 million program for seniors will remain in place.\u00a0<\/span><\/p>\n

Together, the two programs have cost the state at least $1.6 billion, according to an <\/span>audit<\/span><\/a> released in February, far exceeding budgeted costs for the program.\u00a0<\/span><\/p>\n

“We had to make some tough decisions here. That program grew at greater rates, financially, than we thought it would, and we had to make some hard decisions,\u201d Gabel said.\u00a0<\/span><\/p>\n

Federally Qualified Health Centers are set to receive $40 million in the budget. The centers provide health services to low-income and uninsured people. Democrats touted that increase to provide care for immigrants who would have qualified for the health care program.<\/span><\/p>\n

Illinois <\/span>still risks losing<\/span><\/a> some Medicaid funding under a proposal in Congress that threatens to slash reimbursements for states that provide health insurance to people illegally in the United States. But Gabel noted it\u2019s possible those reductions won\u2019t take place until 2027.<\/span><\/p>\n

The budget also increases funding for safety-net hospitals with federal Medicaid funding cuts possible.<\/span><\/p>\n

Education spending<\/b><\/p>\n

The state\u2019s 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 Democratic leaders.<\/span><\/p>\n

Funding for the Illinois Community College Board would also decrease by $24 million, mostly because lawmakers reduced spending on a workforce development grant that Democrat leaders said was not being fully utilized.<\/span><\/p>\n

Funding for state universities\u00a0 would only increase by 1%. Pritzker proposed a 3% increase for higher education even as most other areas of his budget would\u2019ve increased by 1%. Senate Democrats\u2019 budget leader Sen. Elgie Sims, D-Chicago, said the budget allows for an additional 2% increase in FY26 if the federal government eliminates substantial funding.\u00a0<\/span><\/p>\n

Pensions<\/b><\/p>\n

Despite more than a year of discussions, Illinois lawmakers did not tackle pension reform this spring. Illinois’ Tier 2 pension system is likely out of compliance with Social Security\u2019s \u201csafe harbor\u201d law that requires pension benefits to be at least equal to Social Security.<\/span><\/p>\n

Part of the budget package created a new Tier 2 reserve fund that can be accessed if there are violations of the \u201csafe harbor\u201d law. Lawmakers appropriated $75 million for the fund this year, in line with Pritzker\u2019s proposal.\u00a0<\/span><\/p>\n

\u2018Emergency\u2019 fund, raises, more<\/b><\/p>\n

Notably not in this year\u2019s budget is an increase to the \u201crainy day\u201d fund. Pritzker has taken pride in the fund\u2019s increases in recent years, as it\u2019s grown to a balance of $2.3 billion, up from less than $60,000 when Pritzker took office. The FY26 budget would suspend the monthly transfer for one year, freeing up $45 million for general fund use.<\/span><\/p>\n

The budget package also establishes a new $100 million fund that the governor can tap into \u201cin the event of unanticipated delays in or failures of revenues.\u201d The measure, an apparent nod to the uncertainty of federal funding amid ongoing congressional budget negotiations, will come from money swept from other funds.<\/span><\/p>\n

\u201cThat will allow us to respond to actions by the federal government and challenges that present themselves and costs that have been diverted from the federal government to the state government,\u201d Sims said in a committee hearing.<\/span><\/p>\n

The attorney general\u2019s office would get $116 million from the general fund. Attorney General Kwame Raoul asked lawmakers to boost funding for his office as he engages in a growing number of lawsuits against the Trump administration. Raoul was hoping to receive $120 million in funding.<\/span><\/p>\n

Direct service providers are in line for an 80-cent per hour wage increase, but Republicans said calling it a funding increase is \u201csleight of hand,\u201d because the measure would also reduce work hours for DSPs by the hundreds of thousands. That makes the increase negligible, Sen. Chapin Rose, R-Mahomet, said in committee.\u00a0<\/span><\/p>\n

\u201cIt\u2019s not a great budget, but it is a good budget and it is the budget we need for this very difficult moment,\u201d Rep. Lindsey LaPointe, D-Chicago, said.\u00a0<\/span><\/p>\n

Lawmakers will see their salaries rise as part of the budget, going to a $98,304 base salary from roughly $92,000. That\u2019s an annualized rate of increase that is set by law.<\/span><\/p>\n

\u201cYou raised our pay, you gave yourselves hundreds of millions of dollars of our taxpayers funds to spend on your pet projects,\u201d Rep. Amy Elik, R-Godfrey, said. \u201cSo I simply don\u2019t believe you anymore that you ever intended to be fiscally careful.\u201d\u00a0<\/span><\/p>\n

No Bears stadium funding<\/b><\/p>\n

Lawmakers did not appropriate funding for the Chicago Bears to build a new stadium. But NASCAR would be the recipient of a $5 million grant ahead of the sport\u2019s third downtown Chicago race in July, and the PGA Tour would receive a $1 million grant as part of hosting the 2026 President\u2019s Cup in DuPage County. Those were two economic development measures criticized by Republicans during the Senate committee hearing.<\/span><\/p>\n

The budget also contains $200 million to prepare unused state properties to be repurposed for development, Sims said. Lawmakers removed another $300 million that Pritzker had sought in spending\u00a0 aimed at offloading surplus property.\u00a0<\/span><\/p>\n

Gabel said the state\u2019s employee management department has negotiated more than $100 million in health care cost savings as well.\u00a0<\/span><\/p>\n

Any remaining federal pandemic relief funding would also be sent to recipients that have not received payments in previous years before the funding expires in 2026.<\/span><\/p>\n

Jade Aubrey contributed.\u00a0<\/span><\/i><\/p>\n

Capitol News Illinois<\/span><\/i><\/a> 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.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

By BEN SZALINSKI & JERRY NOWICKI Capitol News Illinois news@capitolnewsillinois.com SPRINGFIELD \u2013 Giving almost no time for public review, Illinois Democrats pushed through a $55.2 billion budget for next fiscal […]<\/p>\n","protected":false},"author":4,"featured_media":2276,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[19],"tags":[],"class_list":["post-11262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-local-news"],"acf":[],"yoast_head":"\nState Budget Passes - Effingham's News and Sports Leader, 979XFM and KJ Country 102.3<\/title>\n<meta name=\"description\" content=\"Effingham's News and Sports Leader\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thexradio.com\/news\/local-news\/11262-state-budget-passes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"State Budget Passes - 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