Democrats Tee Up $56 Billion Budget for Passage Sunday
House Speaker Chris Welch and Senate President Don Harmon leave a meeting with Governor JB Pritzker at the Illinois State Capitol Friday. (Photo: Chicago Tribune)
Democrats released a 3,500 page Fiscal Year 2027 spending plan around 9pm Saturday night in anticipation of supermajority Democrat passage of the new budget before the scheduled adjournment of the spring legislative session tonight.
The budget relies on around $800 million in tax increases and fund diversions, including Gov. Pritzker’s proposed tax on social media companies, changes to the net operating loss deduction for business, shifting sales taxes on candy and soda from infrastructure to the General Revenue Fund, taxing cryptocurrency and fantasy sports websites, and an increase in the tobacco sales tax.
The budget would also include shifting some $150 million in sales taxes collected while gas prices have skyrocketed in recent months to help cover the shortfall in the new budget.
Some lawmakers have privately voiced concerns that multiple lawsuits are likely to be filed against some of the proposed tax increases, which could throw a wrench into FY27 revenues.
It also appears Gov. Pritzker’s proposed reduction in income tax revenue sharing with local municipalities, the Local Government Distributive Fund, or LGDF, is off the table.
While progressives have publicly and privately lobbied for more spending and higher taxes to better fund schools and social services, it appears leaders are moving forward with a smaller increase in spending. It appears most Democrats are on board with the spending plan.
“I think we’re gonna be fine,” one top Democrat in the statehouse said Sunday morning in response to the package. “It’s never easy to get there, but I think this will pass without much drama.”
Republicans, meanwhile, are harshly critical of the plan and budgets under Gov. JB Pritzker.
“Healthy states don’t need new taxes,” said Sen. Chapin Rose (R-Mahomet), the Senate GOP budgeteer, though Republicans were mostly locked out of budget negotiations this spring. “Healthy states aren’t punishing their citizens with a tax burden that is directly correlating into the overall economy. What has the last 8 years under JB Pritzker gotten you?”
