Staff Reports
Governor J.B. Pritzker of Illinois, a Democrat, recently signed the largest state budget in Illinois history, totaling $53.1 billion. This marks the sixth consecutive balanced budget under his administration but represents a significant 32% increase from the budget he proposed in 2019.
Key allocations in the budget include $350 million for K-12 education and $100 million for other school programs. Additionally, $2.3 billion is set aside for the state’s rainy day fund. Governor Pritzker has also designated $182 million for services for migrant asylum-seekers and $440 million for healthcare for noncitizens. Despite these provisions, the budget has faced criticism, even from within Pritzker’s own party. Democratic state Representative Fred Crespo suggested implementing a hiring freeze and across-the-board cuts to manage the budget more effectively.
To fund this expansive budget, Governor Pritzker is raising taxes by $750 million. This includes $725 million from sports betting and video gambling, along with an increase in gas taxes. Additional revenue measures include $526 million from capping tax-deductible business losses and $235 million from further increases in sports betting and video gambling taxes. However, the budget also eliminates the 1% sales tax on groceries and introduces a child tax credit of up to $300 for households with children under 12.
Governor Pritzker and other Democratic leaders who negotiated the budget have defended the record spending, arguing that it is essential for the state's future. House Speaker Pro Tempore Jehan Gordon-Booth highlighted the long-term investments being made and the commitment to maintaining the state’s fiscal stability.
