Illinois Governor J.B. Pritzker has proposed a $52.7 billion state spending plan for the upcoming fiscal year, representing a 2% increase in spending. The budget focuses on addressing the migrant crisis, education, and quantum computing. Pritzker emphasized that the budget is tight this year, but the state’s fiscal house is in order, allowing them to keep their commitments to the people of Illinois. The budget proposal includes tax increases that will primarily target businesses, including a significant sports betting tax hike.
One of the most controversial aspects of the budget proposal is funding for asylum seekers, with $182 million allocated for migrants as part of a joint funding plan with Cook County. This money would be used for services such as coordinating housing and legal help, as well as programs to combat homelessness. Chicago, which has already allocated $150 million in the city budget for asylum seekers, has struggled to house and care for the nearly 36,000 asylum seekers who have arrived since 2022. Governor Pritzker has criticized Texas Governor Greg Abbott for manufacturing a crisis that has been cruel to families, accusing him of planning the arrival of asylum seekers in a way that would create chaos.
The budget proposal also includes measures to address a smaller-than-expected deficit, such as more than doubling the sports wagering tax paid by casino sportsbooks and capping a deduction that allows corporations to reduce their taxable income. Pritzker also plans to allocate $500 million for quantum computing technology, including a cryogenic facility. Education is a central focus of the budget, with an additional $150 million proposed for a statewide effort to provide universal preschool in Illinois by 2027. K-12 education spending will also increase by about $450 million, including funds for transportation, special education grants, a state literacy program, and a teacher vacancy pilot program.
Governor Pritzker also outlined a plan to address Illinois’ massive pension debt by increasing the funding target from 90% to 100% and extending the payment deadline to 2048. For consumers, he proposed permanently repealing a 1% sales tax on groceries, which was temporarily suspended for a year in 2022. Overall, Pritzker characterized the budget as focused and disciplined, acknowledging the challenges faced by the state while maintaining that their fiscal house is in order. The budget proposal will now be subject to negotiations with lawmakers in the Democrat-majority House and Senate.
