il Budget Plan Raises $55.2B with New Taxes
Key aspects of the budget include a delinquent tax payment incentive program, estimated to generate $198 million in revenue, and a $307 million allocation for K-12 education. The budget also includes a 1% increase in funding for state universities, but does not address the state's Tier 2 pension system.
The Illinois Senate has passed a $55.2 billion budget that includes new taxes on sports bets, nicotine products, and businesses, raising about $500 million more in new revenue than Governor JB Pritzker's February proposal. The budget prioritizes education spending, with a $350 million increase in funding for K-12 schools, as well as a 1% increase in funding for state universities.
The budget proposal, unveiled by Illinois Democrats, includes specific tax increases in areas such as gambling, tobacco, and vape products, but does not rely on broad tax hikes to balance the budget. The plan generates $55.4 billion in revenue and allocates $55.2 billion in spending. A new $100 million "emergency" fund and a $40 million increase for Federally Qualified Health Centers are also included in the budget.
The budget makes significant increases for the state's hospital systems, particularly safety-net hospitals, and builds in wage increases for direct service providers. However, it eliminates a health care program that provides benefits to undocumented immigrants in Illinois between ages 42 and 64. Lawmakers will also see their salaries rise as part of the budget, with a base salary increase to $98,304 from roughly $92,000.
The passage of the budget marks a significant development in the state's fiscal planning, with a focus on education, healthcare, and revenue generation. The new taxes and funding allocations are expected to have a significant impact on the state's economy and residents, and will be closely watched in the coming months.