Lawmakers unveil $55B spending plan with just 1 day left to pass it
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.
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.
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)
“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.
Read more: Pritzker calls $55.2 billion budget ‘responsible and balanced’ | Governor’s office cuts revenue projection by $500 million
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 proposed budget also fully funds the annual increase to the K-12 evidenced-based funding model with $350 million.
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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