Governor Pritzker Gives "State of the State" Address
On Wednesday , Governor JB Pritzker addressed a joint gathering of the Illinois General Assembly to provide the constitutionally-required State of the State Address that also includes his FY26 budget proposal.
After months of budget forecasts showing a $3.2 billion budget deficit, the Governor’s proposed budget reflects a significant change in anticipated revenue. According to the budget, the current FY25 revenue is expected to increase by an additional $500 million with another $1.5 billion increase in the coming FY26 fiscal year.
The increased revenue predictions are coupled with four revenue enhancements totaling over a half billion dollars in an effort to balance the budget:
After months of budget forecasts showing a $3.2 billion budget deficit, the Governor’s proposed budget reflects a significant change in anticipated revenue. According to the budget, the current FY25 revenue is expected to increase by an additional $500 million with another $1.5 billion increase in the coming FY26 fiscal year.
The increased revenue predictions are coupled with four revenue enhancements totaling over a half billion dollars in an effort to balance the budget:
- Creation of a limited tax amnesty program will generate $198 million. Taxpayers who owe taxes are able to pay back taxes and avoid payment of penalties and interest. Tax amnesty windows are traditionally opened every 5-7 years.
- An additional $100 million will be realized by “realigning” taxes in table games and electronic games at 15 of the 16 casinos in Illinois.
- An additional $171 million will come by pausing the transfer of funds from sales taxes on motor fuel to the Motor Fuel Tax Fund. This is the last year the transfer is scheduled, but the Governor is proposing delaying it.
- Elimination of the 280E state-level deduction for cannabis industry business expenses is expected to generate $20 million in gross individual income tax revenue.
All told, the Governor’s FY26 budget proposal totals $55.4 billion in revenue and $55.2 billion in spending for a small $200 million surplus, $64 million of which will be deposited into the state’s Rainy Day Fund.
He's also including a transfer of $100 million from FY25 revenue that was allocated for member initiatives into the state’s Fund for Illinois Future, also known as the state’s “closing fund.”
Wednesday's State of the State and budget address kickstarts the legislative session which is scheduled to adjourn at the end of May.