Gov. JB Pritzker proposes $2B in spending growth without new income or service taxes in budget

SPRINGFIELD, Ill. (WLS) -- Gov. JB Pritzker has proposed growing spending by about $2 billion without new income or service taxes in the upcoming fiscal year - though his administration acknowledged policy changes by the Trump administration could drastically alter the fiscal landscape.

Spending and revenues would each grow by about 3% under the proposal laid out Wednesday during the governor's annual budget address, with total general revenue fund spending growing to $55.2 billion.

Gov. JB Pritzker delivered his budget address Wednesday.

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Pritzker entered the House chamber to smiles and applause, but he had somber news for lawmakers: a lean year ahead.

"Every single one of these budget years has presented its own unique set of difficulties. This year is no exception," he said. "I'm proud to say this year's budget proposal is balanced and responsible. It represents some hard sacrifices and moderated spending."

The proposal is balanced, in part, because the governor's budgeting office expects to collect about $1.5 billion more in base tax revenue than it did when it issued its first fiscal year 2026 forecast in November.

That November forecast from the Governor's Office of Management and Budget had projected revenues to remain flat, driving a deficit of $3.2 billion. But it relied on a September economic forecast from the financial services company S&P Global. The governor's office says S&P has since revised its forecasts - but the numbers released Wednesday are ultimately likely to fluctuate amid the rapid pace of policy changes happening in Washington, D.C.

"It's not gone, but it is moderated," Senate President Don Harmon said. "And again, this comes from outside economic experts that forecast these things for the state. The economic winds seem to have shifted a bit in our direction. We'll still have a hole to close, but it won't be nearly as dire."

"I think we have to make sure that the revenue numbers are accurate, and we're just not picking the best ones," House Republican Leader Tony McCombie said. "Regardless, every year since I've been here, we have raised the budget."

The governor's proposal would increase K-12 funding by $350 million and boost higher education funding by 3%. He'd keep funding flat for the Early Childhood Block Grant, however, which is a major driver of his effort to increase access to publicly supported preschool in Illinois.

The spending plan calls for allowing community colleges to offer four-year degrees in key areas.

"With lower tuition rates and a greater presence across the state, especially in rural areas, community colleges provide the flexibility and affordability students need," Pritzker said.

"This is an opportunity to fill vacancies, right? To bring food to the tables of working families and to reduce their costs and create opportunity," City Colleges of Chicago Chancellor Juan Salgado said.

Ultimately, lawmakers and the governor will have to come to an agreement on a spending plan by the end of May. But the governor's opening salvo could meet opposition from Democratic lawmakers in the General Assembly - especially members of the Illinois Legislative Latino Caucus - due what it doesn't fund.

The proposal would eliminate a health care program for low-income noncitizens aged 42-64 who are in the U.S. without legal permission. The Health Benefits for Immigrant Adults program, which was implemented in 2022, provided Medicaid-like and costs the state general revenue fund roughly $330 million, or less than 1 percent of the overall budget.

"As always, I stand ready to work with members of the General Assembly to deliberate and negotiate the final budget, but let's be clear, I will only sign a balance budget. If you come to the table, looking to spend more, I'm going to ask you where you want to cut," Pritzker said in his address.

Advocates say that program is a key public health measure that drives down emergency room care costs and ultimately saves money. The governor's office says its decision not to propose funding reflects the state's fiscal reality.

The budget proposal maintains funding for a similar program serving immigrants aged 65 and older, passed by the legislature during the early months of the pandemic in 2020.

The governor is also planning to reduce spending for the money spent on welcoming centers.

"So, I think, looking at a difficult budget ahead, I think really trying to protect our neighbors, especially those undocumented, their insurance, the welcome centers, the shelter work we've done trying to build a sustainable system," New Life Centers CEO Matt DeMateo said.

The governor's plan would raise another $469 million in revenue through other changes to law, including adjusting tax rates on electronic gambling and table games at casinos to generate $100 million in revenue. The plan also calls for pausing the transfer of $171 million in sales tax collected on motor fuel to the road fund, and raising $198 million by providing temporary amnesty for individuals making delinquent tax payments.

The governor called out President Donald Trump over tariffs.

"We ought to be focused on making life more affordable for everyday Illinoisans. With the new tariffs already put in place by President Trump and the ones that he has proposed, the cost of everyday goods like tomatoes and beef and beer is likely to rise again," he said.

Pritzker also warned of what he referred to as the dangers coming from Washington. His address got very political.

"This year, the surfacing difficulty is Donald Trump's and Elon Musk's plan to steal Illinois' tax dollars and deny our citizens the protection and services they need," Pritzker said. "I'm watching with a foreboding dread what is happening in our country right now."

The governor, who is Jewish, made numerous references to Nazi Germany in his speech, suggesting people need to learn from that history now.

"The authoritarian playbook is laid bare here: They point to a group of people who don't look like you and tell you to blame them for your problems," Pritzker said.

Republicans left shocked.

"Wow, this was a very political budget speech. Clearly, the governor is beginning his run for the presidential race," Deputy Republican Leader state Sen. Sue Rezin said.

"That was absolutely despicable. I mean, look, you're governor of Illinois. This is a state budget address. We're here to deal with Illinois issues and to take it off the rails at the end there the way he did. I mean, absolutely ridiculous. I mean, he is driven only by blind ambition to be president United States," said state Sen. Chapin Rose, R-Mahomet, Senate budgeteer.

The governor's frequent comments about Nazis caught many by surprise.

"And, if we don't want to repeat history, then, for God's sake, in this moment, we better be strong enough to learn from it," Pritzker said.

Other budget proposals include lowering prescription drug costs and cracking down on crypto currency crimes.

"We want economic growth and that's through good policy," McCombie said. "We want no tax increases, that's, that's essential. And we want cuts in costs. And so if we can get those three things in this framework, then that's a win for Illinois."

The governor also called for a ban on cell phones in classrooms.

Chicago Public Schools said in a statement, "Chicago Public Schools (CPS) appreciates any efforts to increase the focus on teaching and learning during the school day, and especially in the classroom. CPS will continue working with our partners in state government by reviewing this statewide initiative and legislation to ensure ongoing collaboration and compliance. While CPS does not have a Districtwide policy regarding student cell phone usage, District schools currently have the autonomy to establish and implement their own cell phone usage guidelines."

A report by the Illinois Commission on Government Forecasting predicts that Illinois will underperform the rest of the Midwest and the nation economically this year.

This budget is expected to go up by about $2 billion in spending, at more than $55 billion, which will make it the largest budget in state history.

Members of the Legislative Black Caucus were generally pleased with the budget, ready to fight for their communities for violence prevention and health care.

"For us in the Illinois Legislative Black Caucus, we want to make sure that we're prioritizing our needs. We want to make sure that these critical programs and critical services do get funded," said state Rep. Justin Slaughter, a Democrat representing the South Side.

And, if Chicago is hoping for additional funds, that seems unlikely.

"There's no new money, though. And I think the answer is going to be no across the board to a lot of projects," Illinois Comptroller Susana Mendoza said.

But Republicans are skeptical of the budget, especially when days ago the deficit was projected to be over $3 billion.

"Now, all of a sudden, two days ago, the governor came out and said, 'Oh, those, those numbers are wrong, and we actually have enough money to balance the budget,'" Rezin said.

All the politics aside, this budget is by most accounts going to be a difficult one to hash out in the months ahead. And, in the end, it will surely go through a number of changes.

In a statement after the budget address Wednesday, Harmon said:

"I thought it was a speech for our moment.

"The governor recognizes that our budget doesn't exist in a vacuum and is subject to the economic winds in Washington and our place on the greater world stage.

"We have our work cut out for us, not just balancing Illinois' budget, but also doing what we can to protect democracy.

"I applaud the governor for his leadership and look forward to working with him on our shared goals of assembling a balanced, responsible budget and building a better Illinois."

The Chicago Teachers Union released a statement saying:

"We have seen Governor Pritzker lead during Covid. We have seen him lead on criminal justice reform. We know what it looks like when the governor provides leadership on pressing issues. The people of Illinois need to see that same leadership for its children.

"Even before Donald Trump came back into office, the governor inherited a position that underfunded the state's schools and ignored the legislature's mandate to invest in our children's education. He can and should turn the page on generations of disinvestment and join the other governors who have made education and care for their state's children their highest priority.

"People are asking how Illinois can be the economic driver of the entire Midwest but we are told we can't do what others have found a way to make happen for our children. There's no better investment than to invest in our children, period.

"The stakes for Illinois are even higher now that Trump's Project 2025 government is demanding states bend the knee or lose funding.

"Faced with threats to queer and trans, unhoused, Black, and immigrant students, students in special education, the values on which we base our educational curriculum, and to federal funding itself, the people of Illinois are asking whether or not Illinois has a plan to protect the children in its school districts from Trump and his WWE nominee.

"With billionaire boys breaking the federal government, this is not a time for minimum steps, business as usual, or letting the ultra-rich off the hook once again. This is a time for bold leadership from the Governor, Speaker, Senate President, and Illinois General Assembly that can counter their threats, stabilize our state, and set an example for what it looks like to lead the state in a starkly different direction than what is being demanded by Washington."

Capitol News Illinois contributed to this report.