Illinois budget lands in Springfield: First draft of FY2026 proposes $55.2 billion budget

SPRINGFIELD, Ill. (WAND) — Illinois financial year 2026 budget bill was released Friday with a total of $55.2 billion in spending.

The first draft of the proposal has been negotiated long behind close doors between the Governor and leaders in Springfield. Even with a predicted budget deficit, the state has increased spending from FY2025, which had a $53.1 billion budget.

State Sen. Elgie R. Sims (D-Chicago) is one of the lead budgeteers in the budget process. The Democrat said the deficit was made up through different revenue streams.

"There are no broad based tax increase in this budget," Sims said. "There's not an increase on the individual or corporate income tax. We are trying to make sure the individual pays their fair share and corporations, who are the most profitable also pay their fair share."

As this is the first draft of the budget bill, any changes could happen to it until now and when the budget needs to be passed on May 31.

As of writing where the new revenue is coming from has not been revealed yet, but Sims said there are $1 billion in revenues coming from multiple sources.

"There are tax collections for those who have not paid their taxes but also for those who make choices and their behaviours in terms of gaming, tobacco and vape use," Sims said.

In the draft includes some program cuts. Afterschool for Children and Teenagers program, which funds afterschool and summer programs all across the state, said in a press release "Illinois is set to eliminate all afterschool funding."

In the FY2025 budget, ACT were meant to receive $50 million dollars, but the program never got the funds, where as a result 27,000 students lost programming.

“Our politicians will tell us that this is a tough budget year, and that President Trump has put us in an impossible position with his unconscionable cuts to federal funding. However, it was Illinois politicians who failed our children last year, and it is Illinois politicians who are making the decision about where our tax dollars go now. Leaving afterschool programs entirely unfunded is on them, and no one else."

Another cut in the budget draft was the entire Health Benefits for Immigrant Adults program. Sims said many of the program cuts came because of the Trump administration.

"There are activities coming out of Washington and we recognize that," Sims said. "It's not just unique to the immigrant healthcare but across the board there are decisions happening in Washington that will affect our entire budget whether that's our Medicaid spending, whether that's education or whether that's our environment."

The budget bill is in the rules committee waiting to be assigned to a committee for a hearing. Lawmakers will need to pass this budget by Saturday at midnight.