SPRINGFIELD, Ill. — Illinois Democrats have introduced a comprehensive $55 billion budget proposal for fiscal year 2026, as reported by Senator Elgie Sims during a press briefing on Friday evening.
The lengthy 3,363-page spending plan was unveiled shortly after 6 p.m., just ahead of the Saturday deadline for the budget’s passage.
While an exact revenue proposal to cover the anticipated $1 billion gap has not been made publicly available, Senator Sims indicated that the budget will not rely on broad tax hikes.
Instead, the proposal includes targeted tax increases in certain sectors, with new taxes levied on gambling, tobacco, and vape products.
Additionally, Sims hinted at potential increases for some businesses, although he emphasized that Illinois’ state corporate income tax must remain flat due to constitutional mandates.
“We’re trying to ensure individuals and the most prosperous corporations pay their fair share,” Sims stated.
The newly introduced budget largely reflects the $55.2 billion spending plan proposed by Governor JB Pritzker earlier this year. This unveiling comes against a backdrop of budgetary uncertainty stemming from recent developments in Congress, which may affect state finances.
Sims remarked, “This budget acknowledges the significant challenges we face and ensures we’re prepared for any chaos coming out of Washington. We are not shying away from our responsibilities but are instead confronting them head-on.”
One notable aspect of the proposal is the potential elimination of a health care program designed for undocumented immigrants aged 42 to 64, which was projected to save the state approximately $330 million.
Sims noted, “The Health Benefits for Immigrant Adults (HBIA) program was not included in the budget, reflecting the challenges stemming from federal proposals that are adversely impacting Illinois and other states.”
The governor’s office had previously forecasted revenue for fiscal year 2026 at $54.9 billion; however, a recent estimate from the General Assembly’s independent Commission on Government Forecasting and Accountability has predicted a further decrease to $54.5 billion.
This shortfall is attributed to expected declines in federal funding, combined with a less optimistic economic outlook that has led to downward revisions of revenue estimates.
Nevertheless, Senator Sims expressed confidence that the yet-to-be-filed revenue plan will yield just over $1 billion in revenue.
Another innovative source of revenue in the proposal is a delinquent tax payment incentive program that aims to help the state recover overdue tax payments, which is expected to generate around $198 million.
Given the looming cuts in Medicaid funding at the federal level, Sims emphasized that the budget includes substantial increases for the state’s hospital systems, particularly for safety-net hospitals, along with planned wage increases for direct service providers.
Furthermore, the proposed budget will fully fund the annual increment to the K-12 evidenced-based funding model, contributing an additional $350 million.
In a noteworthy decision, lawmakers’ salaries will also see an increase, with the base salary rising from approximately $92,000 to $98,304 as mandated by law.
In summary, the introduction of the $55 billion budget proposal lays out a strategic plan for Illinois, aiming to navigate economic challenges while addressing key areas of concern, including healthcare, education funding, and revenue generation.
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