(The Center Square) – Illinois Gov. J.B. Pritzker is proposing the largest state budget in Illinois history. Pritzker on Wednesday proposed spending $55.2 billion in state taxpayer dollars, $2 billion more than the current fiscal year.
While previous revenue projections in November showed a more than $3 billion deficit, officials with the governor’s office found marginally more revenue. During his budget address Wednesday, Pritzker promised the budget is balanced but recognized slow revenue growth.
“We expect to finish this year with 5% revenue growth. For 2026, our forecast projects a 1.9% increase, much more modest,” the governor said.
With that, the governor’s budget increases spending by $2 billion from the current fiscal year. Pritzker said he will work to find efficiencies.
“This proposed budget enacts cost-saving operational efficiencies, improves productivity, curtails new hiring at agencies, consolidates unnecessary segregated funds, eliminates dormant boards and commissions, and overhauls state purchasing to save taxpayers money,” he said.
Among other changes in spending, the Health Benefits for Immigrant Adults is not funded in the plan, but there will be $132 million for Health Benefits for Immigrant Seniors.
The total proposed budget is nearly $130 billion when including federal funding. In state tax dollars, the plan spends $55.2 billion
Education was a big part of the governor’s plan.
“Despite the challenge we are facing this year, my budget proposal increases our commitment to Evidence Based Funding for public education so that we put new resources in underfunded schools first,” Pritzker said.
Around a quarter of the state’s $55.2 billion in spending will be for education. Pritzker said new discretionary spending is only increasing by 1% in his proposed budget.
“Other expenditures are mandatory: full pension payments, inflation on healthcare coverage, and debt pay-down, for example,” he said.
About 20% of the budget goes for pensions.
Legislators will now take the proposal and craft the budget during spring session, with the fiscal year 2026 plan set to begin July 1.
