State lawmakers built Illinois’ record $55.2 billion budget for 2026 on gimmicks, one-time fixes and piecemeal tax hikes. They left pension debt, transit cliffs and real reform for another day.
By Ravi Mishra and Lauren Zuar | The Center Square
Illinois state lawmakers eked out a budget for 2026 at the last minute, upholding Springfield’s fiscal maxim: when restraint is too tough, sweep funds and squeeze taxpayers a little harder.
With less than a day to review an over 3,000-page spending plan, the Illinois General Assembly greenlit a record-setting $55.2 billion budget. It’s up $2 billion from last year, loaded with sleight-of-hand budget tricks and stealth taxes.
While the budget avoids the broad tax hikes on income, sales and services that were pitched as fixes for the state’s public transit fiscal crisis, it leans on over $1 billion in revenue changes. This includes:
- $482 million in under-the-radar tax hikes
- $100 million in fund sweeps
- $444 million in temporary measures
These measures showcase Illinois lawmakers’ propensity for choosing optics over outcomes, risking potential tax increases later and weakening voters’ confidence in Springfield.
Despite using quick fixes to create the illusion of balance on paper, this year’s budget still shorts pension payments and keeps the state’s emergency fund dangerously low. The state also still has to address the looming $770 million deficit facing the Chicago area’s Regional Transit Authority, potentially leading to other tax hikes.
Here’s a look at key revenue and spending changes that start July 1 with Illinois’ 2026 budget.
Read more here.