Latest news with #IllinoisBudget
Yahoo
a day ago
- Business
- Yahoo
Illinois lawmakers pass $55 billion state budget Saturday
PEORIA, Ill. (WMBD) — Shortly after state legislators passed the fiscal year 2026 state budget, reactions poured in from politicians who were split down party lines. Many Republicans shared the same sentiment that the new budget was 'bloated' with what they felt were tax increases that hurt working-class Illinoians. The state Democrats, on the other hand, rejoiced over the budget, with many claiming it would help fund much-needed entities such as schools and healthcare and help offset turmoil in Washington, D.C. Republican Rep. Ryan Spain, who represents the House's 73rd District, which includes areas north of Peoria such as Dunlap, Princeton, and Geneseo, denounces the budget and what he says is nearly $1 billion in tax hikes. 'Our state has been in an uncertain financial position for decades, thanks to years and years of financial malfeasance at the hands of the Democratic majority, who have maintained their artificial majority thanks to some of the worst gerrymandering in the entire country,' he said. 'So, it doesn't surprise me that Democrats again violated their own House Rules to ram through the near-largest spending plan in state history that robs the road fund to pay for standard operating expenses, gives legislators another pay rise, diverts funds meant for property tax relief and slaps the people of the state of Illinois with $1 billion in tax hikes. This budget doubles down on years of failed economic strategy that has caused our state to fall behind all our neighbors. The people of the state of Illinois deserve better from their government.' Democratic Sen. Dave Koehler, who represents the Senate's 46th District, including Peoria, East Peoria, and most of Bloomington, celebrated the passing of the budget, citing the support of healthcare. 'This year's budget demonstrates our commitment to providing all Illinois residents with high-quality access to health care,' Koehler stated. 'Our Investment in community-based providers makes certain that essential healthcare services remain available and open for vulnerable residents both in the 46th district and across the state.' Republican Rep. Dennis Tipsword, who represents Illinois' House's 105th district, and he felt the budget was 'bloated' and is sending Illinois 'down the wrong path.' 'The more things change, the more they stay the same in Illinois. Democrats have passed another bloated budget that includes $1 billion in targeted tax increases,' Dennis Tipsword (R-Metamora) said. 'On top of the tax increases, Democrats rewarded themselves with a huge pay raise and pork projects dedicated to their districts. 'Spending has increased by 38 percent in the last six years, a path and pattern that is simply unsustainable. The process to pass this year's budget was again shrouded in secrecy and behind closed doors,' he said. Democratic Rep. Jehan Gordon-Booth, who represents the House's 92nd District, including Peoria, Peoria Heights, and Bartonville, feels it is a responsible and compassionate budget that supports schools, healthcare and helps tackle challenges in Washington, D.C. 'This document puts people first, and reflects a balanced approach in a challenging time,' Gordon-Booth said. 'We're unable to count on the federal government to be an ally on critical issues that help families, and the economic uncertainty caused by reckless cuts and tariff plans further compelled us to develop a forward-thinking budget that has flexibility with funding reserves. By making necessary cuts, we're ensuring we can maximize our resources on priorities that matter to families. 'We took steps forward, but more work remains. I'm going to continue fighting for families so that we can build a brighter future for every community,' she said. Republican Sen. Neil Anderson, who represents the Senate's 47th district, which includes Pekin, Kewanee and Carthage, stated that this is the largest budget in Illinois history, and it hurts Illinois families. 'While Illinois families are cutting back to survive, Democrats just pushed through a $55 billion spending plan, the largest in state history,' he said. 'Worse yet, it comes with nearly a billion dollars in new tax hikes. The budget will mark a nearly 40% increase in state spending since Governor Pritzker took office. 'Our state is already one of the most overtaxed in the nation, yet instead of providing relief to working families and small businesses, Democrats chose greed over responsibility. The result? Businesses are closing. Families are fleeing. And Springfield's insiders keep cashing in while the rest of us pay the price. This isn't leadership, it's exploitation. It's economic warfare against the very people they claim to serve,' he said. Republican Sen. Li Arellano Jr., who represents the Senate's 37th District, which includes Dunlap, Geneseo and Dixon, shared a very similar sentiment as his colleague Anderson. 'Illinois Democrats have just rammed through the largest and most reckless budget in our state's history, over $55 billion in spending, passed with zero transparency, minimal debate, and no regard for the taxpayers who are footing the bill,' he said. 'This isn't leadership. It's political corruption, plain and simple, snuck in during a midnight vote. 'To make matters worse, they're hitting working families with nearly a billion dollars in new taxes. Democrats keep demanding more from you while delivering less. Less public safety. Fewer job opportunities. Less economic growth.' Gov. JB Pritzker shared the same views as his Democratic Party members, saying this was his seventh balanced budget. 'The passage of the FY26 balanced budget is a testament to Illinois' fiscal responsibility,' Pritzker said. 'Even in the face of Trump and Congressional Republicans stalling the national economy, our state budget delivers for working families without raising their taxes while protecting the progress we are making for our long-term fiscal health. I'm grateful to Speaker Welch, President Harmon, the budget teams, and all the legislators and stakeholders who collaborated to shape and pass this legislation. I look forward to signing my seventh balanced budget in a row and continuing to build a stronger Illinois.' Republican Rep. Travis Weaver, who serves the House's 93rd District, which contains Pekin, Brimfield, and Kewanee, shared his quarrels with the budget, saying it is 'outrageous and egregious spending.' 'This year's $55.2 billion budget is $2 billion more than last year and 38 percent higher than it was just six years ago. This is outrageous and egregious spending, and to top it off the majority party is raising taxes by $1 billion to 'balance' their budget hole, he said. 'Illinois does not have a revenue problem, it has a spending problem. We have to tighten our belts, cut waste, and respect our taxpayers and their hard-earned dollars. 'This year's budget process once again involved zero transparency and bills introduced in the final moments of session with no time for actual debate or input. The budget is so bloated it required multimillion-dollar pork projects targeted for Democrat-controlled districts intended to gain their 'yes' vote,' he said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Business
- Yahoo
Illinois Legislature passes record-high $55.1 billion budget
SPRINGFIELD, Ill. (WTVO) — Illinois legislators passed a record-high $55.1 billion state budget early Sunday. 'The passage of the FY26 balanced budget is a testament to Illinois' fiscal responsibility,' said Governor JB Pritzker. 'Even in the face of Trump and Congressional Republicans stalling the national economy, our state budget delivers for working families without raising their taxes while protecting the progress we are making for our long-term fiscal health. I'm grateful to Speaker Welch, President Harmon, the budget teams, and all the legislators and stakeholders who collaborated to shape and pass this legislation. I look forward to signing my seventh balanced budget in a row and continuing to build a stronger Illinois.' Democrats, such as Sen. Laura Ellman (D-Naperville), said, 'This budget allocates investments in priority areas – putting Illinois on the right path to fiscal responsibility and meeting fiscal obligations. We are continuing our commitment to evidence-based funding and education, significantly support Medicaid access, preserving employee pensions and wages, as well as furthering the economic health of our state through investments in our workforce programs and state infrastructure.' Critics, including the Illinois Chamber of Commerce, say the budget includes more than $350 million in new taxes, including corporate income tax increases, gaming taxes, short-term rental taxes, nicotine taxes, telecommunication taxes, and increased fees. 'Starting January 1, 2026, customers would pay a delivery tax on most deliveries to their homes — $1.50 at a time,' Sen. Dave Syverson (R-Cherry Valley) said. 'It's a regressive tax that would hit working families, seniors, people who simply can't afford a car and those on fixed incomes the hardest. For families just trying to make ends meet, it would be yet another burden they didn't ask for.' The budget contains funding for the , redevelopment of the Singer Mental Health Center, allow Stellantis flexibility to reopen the Belvidere Assembly Plant, and includes increased funding for local K-12 schools, according to Sen. Steve Stadelman (D-Rockford). The budget allows $500 million in funding for site readiness initiatives, including the Surplus to Success program, which will be used to make state-owned sites, such as the abandoned , 'shovel ready' for new development. The plan secures $275 million from the Capital Investments program for the Rockford to Chicago , which is expected to be operational by 2027. The announced plan was to run two trains, seven days a week. The trip to Chicago is expected to take 95 minutes. The location of the station will be on South Main Street, just south of downtown, on the Union Pacific line. IDOT said the line will connect Rockford to Chicago, Milwaukee, St. Louis, Carbondale, and twenty other communities in between. Additionally, the budget includes enhancements to the Advanced Innovative Manufacturing for Illinois Tax Credit and the Reimagining Energy and Vehicles (REV) programs to include additional supply chain industries for electric vehicles. The budget doubles the Illinois Child Tax Credit to $600 per child for eligible families with children under the age of 12. Scholarships and grant funding through MAP grants will increase by $10 million to $771.6 million annually. Operating funding for pubic universities and community colleges will increase $44 million, and the state will maintain $748 million in annual spending for Smart Start Early Childhood Block Grants, which has created 11,000 new preschool seats in the last 2 years. A new Prescription Drug Affordability Fund will use $25 million for pharmacy benefits, while the Medical Debt Relief Program will use $15 million to pay down medical debt for Illinois residents. The budget allows $24 million for reproductive health initiatives, including abortion, which includes $10 million for a public hotline. Additionally, the budget expands abortion rights by shielding Illinois abortion providers from punishment for providing services to college students. The budget also plans to streamline college admissions by proactively offering admission to Illinois public universities based on academic performance. The state will spend an additional $46 million on gun violence reduction programs. 'We've delivered another balanced budget that addresses Illinois' challenges head on, while maintaining fiscal responsibility. I'm proud to support a budget that does not raise income or sales taxes, supports working men and women and boosts economic development in the Rockford-Belvidere area,' said Stadelman. An analysis from the Illinois Policy Institute showed the budget will implement a $43 million property tax hike by cutting the Property Tax Relief Grant; divert $171 million in gas tax revenue from the Road Fund to pay state employee healh care, and create $394 million in tax increases. 'As a result, the budget will push Illinois' nation-leading property taxes even higher and worsen the state's fiscal standing. The budget also increases pension benefits for public sector workers by more than $13 billion, yet at the same time shorts the state's annual pension payment by over $5 billion, according to the plans' actuaries. These decisions put retirements at risk, especially if the market sees another significant downturn,' said Illinois Policy Institute's fiscal and economic analysis director Bryce Hill. Rep. John Cabello (R-Machesney Park), said state Democrats chose to fund projects in their own district, and give millions in taxpayer funder benefits for undocumented migrants at the expense of families, small businesses, and law enforcement. 'This budget doesn't reflect Illinois values—it reflects bad governance,' said Cabello. 'Every dollar spent on enabling Illinois' financial crisis is a dollar taken away from the law-abiding Illinoisans who pay their taxes, play by the rules, and now feel abandoned by their government.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Business
- Yahoo
State leaders, lawmakers react to $55.2B state budget that passed just before midnight deadline
SPRINFIELD, Ill. — State leaders and lawmakers, either supporters or opponents of the Illinois state budget for Fiscal Year 2026, issued statements early Sunday morning after state lawmakers approved the $55.2 billion budget and $1.1 billion tax package minutes before their midnight deadline Saturday night. Lawmakers also reacted to major legislation aiming to reform Chicago-area transit agencies and avoid a looming fiscal cliff by hiking delivery fees statewide, which passed out of the Senate but stalled in the House. Read more: Latest Chicago news and headlines Here is some of what state leaders, lawmakers and others had to say after the state budget was passed: 'The passage of the FY26 balanced budget is a testament to Illinois' fiscal responsibility. Even in the face of Trump and Congressional Republicans stalling the national economy, our state budget delivers for working families without raising their taxes while protecting the progress we are making for our long-term fiscal health. I'm grateful to Speaker Welch, President Harmon, the budget teams, and all the legislators and stakeholders who collaborated to shape and pass this legislation. I look forward to signing my seventh balanced budget in a row and continuing to build a stronger Illinois.' 'Since Governor Pritzker and I came into office, we have been focused on replacing fiscal chaos with strength and stability. For the seventh year in a row, we are delivering a balanced budget to working families without sacrificing responsibility or compassion. I am grateful to everyone who worked long hours to get this across the finish line to make our communities safer, happier, and more prosperous. No matter what chaos or reckless policies ooze out of the Trump administration, the people of Illinois know that their leaders are capable of working together to hammer out differences, cut through the noise, and do right by the working families of this state.' 'Despite the economic uncertainty emanating from Washington, we approved a budget that invests hundreds of millions of new dollars in public education, protects access to critical hospitals and health care facilities and does it all without raising state income or sales taxes. We all wish we could do more. But this is a responsible, balanced budget that continues our work to improve the lives of the great people of the great State of Illinois. I want to thank the members of the Senate Democratic Caucus, the House Democratic Caucus, Speaker Welch and Governor Pritzker for the united effort to achieve our shared goals.' 'In a year in which every aspect of our budget-making process has been affected by the extreme and erratic leadership of Donald Trump and his allies, this balanced budget is crafted to be fiscally and socially responsible — because we see the decisions made in Washington right now are neither. The decisions that shaped this budget were not easy, but were made strategically, using the best information we have to make the best decisions for working families and seniors throughout Illinois.' 'I am pleased the governor and legislators completed their work on time in passing a budget for the next fiscal year beginning July 1. This budget aims to provide greater protection for medical programs, especially for safety-net hospitals, and funds key state priorities for needs like education, MAP grants for college students, social and human services, health care, nursing homes and public safety. … I want to stress that the work may not be done. Constant threats of cuts to federal funding endanger some of the vital programs that serve our most vulnerable. My office will closely monitor the situation and continue to pay bills as quickly as possible with the available resources under this budget.' 'In a challenging fiscal climate, this budget includes victories that will make a real difference for Illinois families. Doubling the Child Tax Credit means hundreds more dollars back in parents' pockets to cover everyday costs like groceries, rent, and childcare.' 'Once again, the Democrat majority is raising taxes by another $1 billion on Illinois families, businesses, and job creators to pay for their bad policies and misplaced priorities. The temporary revenue sources included in this budget continue a never-ending cycle that will likely lead to future tax increases. The budget also includes a pay raise and pork projects that are targeted for Democrat-controlled districts only. The process this year included the Democrats choosing to go it alone to bring forth the budget and other important pieces of legislation in the final moments of the legislative session. Illinois families deserve better than Democrats' continued reckless and non-transparent practices. We should be focusing on economic growth through reforms and good policies with no tax increases. It only requires common sense to prevail in Illinois to improve our state, rather than the majority party's focus on reactionary and costly policies.' 'At the start of the legislative session, the Illinois Chamber of Commerce was encouraged by Governor Pritzker's proposed budget, which emphasized fiscal discipline, investment in education, and economic development, without raising taxes. The final $55.2 billion FY26 budget passed by the General Assembly tells a different story. It includes more than $350 million in expansive and punitive corporate income tax increases and creates new gaming taxes, short-term rental taxes, tobacco taxes, telecommunications taxes, and increased fees. This breaks the commitment to avoid new taxes and sends the wrong message to employers across the state. While we applaud the economic development package that aims to attract and retain good jobs and employers, we are disappointed by the costs on businesses contained in the final budget package, which will harm the state's business climate and growth opportunities. As policy impedes growth, it impacts jobs, and that, in turn, affects communities all across the state.' 'This budget relies on one–time sweeps, tax diversions and budget gimmicks to avoid dealing with the real issues: Illinois has the highest tax burden of any state and that our spending continues to grow faster than our revenues. Any claims of 'cuts' in this budget minimize that Illinois spending is still trending up significantly. Add in millions for pet projects exclusively for members of one political party and it's clear Illinois leaders are being reckless with taxpayers' money. This is the exact opposite of what state leaders should be doing. Taxpayers can't afford this.' 'With just over 24 hours to consider thousands of pages of legislation on spending and tax changes, the Illinois General Assembly has approved a record-setting state budget that includes more than $800 million in revenue gimmicks featuring tax hikes, fund sweeps and temporary measures that fail to truly balance the state's budget. The process was so rushed that even bill sponsors seem unclear on the exact amount taxpayers will be asked to pay.' Transit agencies and state lawmakers also reacted to the measure that passed the Senate but failed in the House. 'We are grateful for the months of work of the General Assembly toward both funding and reform for the region's transit system. It's clear that many in both the House and Senate support transit, and our intention is to build on that shared support to identify the funding needed to avoid devastating cuts and disruption for everyone in Northeast Illinois. Balancing regional interests is challenging, but we are ready to continue our work to achieve consensus and deliver a solution. In the coming weeks the RTA will work with the Service Boards on a regional budget that by law must only include funding we are confident the system will receive in 2026.' 'Over the last 19 months, I have collaborated and held discussions with stakeholders, advocates, transit workers and everyday riders about the state of transit, issues currently facing the system and what we can do to improve service for its riders. It's imperative that we deliver a public transit system that provides reliable service for its riders and is accountable to our taxpayers. Now is the time to break through the status quo and embrace solutions made for lasting change. This legislation addresses the critical relief that our public transit systems are yearning for by providing viable, long-lasting solutions to work toward making Illinois home to a world-class public transit system. Across Illinois, residents will now have greater access to affordable, safe, reliable, coordinated and economically impactful transit to get them to where they need to go.' 'Once again, Illinois Democrats are hitting hardworking families with new taxes to cover up their own failures. Whether you need medicine delivered to your door, rely on grocery delivery because you're juggling work and kids, or order household supplies online to save time — you'll be taxed. This is the reality for Illinois families under the new $1.50 delivery tax — a tax that hits nearly every household, just to bail out a broken transit system in Chicago. This isn't about fixing roads or improving transit access for all Illinoisans. It's about forcing people in communities like ours and across Illinois to pay for a transit system many don't use. While political leaders reward mismanagement in Chicago, hardworking families across the state are left paying the bill. It's unfair and it has to stop.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Bloomberg
2 days ago
- Business
- Bloomberg
Illinois Lawmakers Pass Budget With Federal Funding Uncertain
Illinois legislators late Saturday approved a $55 billion spending plan for the fiscal year starting July 1, unsure how many federal dollars they can count on during President Donald Trump's second term. The Democrat-controlled Illinois House of Representatives and Senate voted on revenue and spending legislation Saturday for the fiscal 2026 budget, which cuts roughly $380 million from current spending. The passage comes amid growing uncertainty about funding coming from Washington. The federal government is struggling with its own surging debt and Trump wants to push more costs to states.
CBS News
2 days ago
- Business
- CBS News
Clock ticking for Illinois lawmakers to pass state budget, transit funding before spring session ends
With just hours until a crucial deadline, Illinois state lawmakers were working to pass a $55 billion state budget plan for the next fiscal year. The budget plan unveiled Friday night by Democratic leadership would include new taxes on gambling as well as tobacco and vape products. Another source of new revenue in the budget proposal is a delinquent tax payment incentive program. The program is designed to help the state recover overdue tax payments. The program was proposed by Gov. JB Pritzker and is estimated to generate about $198 million in revenue. A health care program that provides benefits to undocumented immigrants in Illinois between ages 42 and 64 also appears to be eliminated. Pritzker proposed eliminating the program to save the state $330 million. The proposed budget also provides $307 million in additional funding for K-12 schools, but does not include $43 million in property tax relief funds called for under the state's evidence-based school funding model. Chicagoans also have been keeping an eye on additional state funding for the area's mass transit system. Transit officials have said the system is facing a $770 million budget deficit in 2026, and if state lawmakers don't come up with that funding by the end of the spring legislative session Saturday night, CTA, Metra, and Pace must start laying out plans for service cuts of up to 40% for next year. "I think right now, there's wide understanding that we can't have these draconian 40% cuts. I mean, it just would be very painful, disruptive for the city. The economy would really suffer at the same time," DePaul University professor and transportation expert Joe Schwieterman said. Lawmakers spent hours Thursday debating another bill that would overhaul the state's mass transit system, but that bill did not include provisions to address the looming RTA fiscal cliff. That bill, instead, focuses on reforming the structure and governance of the Chicago area's mass transit system, and would replace the RTA with a new organization called the Northern Illinois Transit Authority. Technically, the money doesn't run out until the end of the year, and there will likely be a veto session that could provide another shot at an 11th-hour rescue. But transportation officials say they'll have to start laying out the specific cuts next week if the funding doesn't come through by then. With no end yet in sight as of Saturday afternoon, Illinois Senate Republicans expressed their frustrations with the Democratic-led budget process. "In less than nine hours, the Democrats are going to file over $1 billion in tax increases. The public are not going to see it until it is filed. They are going to pass it through the House and pass it through the Senate," Illinois Senate Republican Leader John Curran said. The state's new fiscal year begins on July 1. If the House and Senate don't pass a balanced budget by midnight Saturday night, they will need a three-fifths majority to approve a budget plan, rather than a simple majority. Ben Szalinski and Jerry Nowicki of Capitol News Illinois contributed to this report
