SPRINGFIELD, Ill. (WAND) — Gov. JB Pritzker signed the Fiscal Year 2025 budget into law Wednesday. The $53.1 billion spending plan is the largest budget in state history.
Democratic leaders told reporters in Chicago that the budget can prepare Illinois for the next generation with investments in education, healthcare and human services.
The Fiscal Year 2025 budget includes $14 million to create the Illinois Department of Early Childhood. It also features an additional $75 million for early childhood block grants to add 5,000 more seats in preschools across the state.
"Millions of working households with children under 12 will receive the first ever Illinois child tax credit, as much as $300," Pritzker said. "That amounts to $50 million in total that we're giving back to folks that need it most."
Democratic lawmakers appropriated $20.3 billion for K-12 education, including a $350 million increase for the evidence-based funding formula. The FY25 spending plan also includes a $10 million increase in MAP grant funding to help even more low-income Illinoisans go to college.
"This is not a budget that is for the nearly 8.5 million Illinoisans represented by the Senate Democratic Caucus," said Sen. Elgie Sims (D-Chicago). "It's a budget for the more than 13 million people of the entire state of Illinois."
Democrats approved more than $290 million for the Home Illinois program to combat homelessness, including $75 million for rental assistance and $42 million to maintain funding for current supportive housing.
The majority party also earmarked $182 million in emergency funding to support Chicago and Cook County's services for asylum seekers. That's on top of the $440 million boost in spending on Medicaid benefits for migrants sent from Texas to Illinois.
"While this budget is undeniably complicated, the message the governor is sending with it could not be more clear," said Senate GOP Leader John Curran (R-Downers Grove). "He is raising taxes on the people of Illinois who are already struggling to afford basic needs and the many job creators fighting hard to keep people employed to pay for the migrant crisis that he has created."
Pritzker told WAND News that Illinois will continue to provide basic care for people who are shipped to the state without resources.
"It is something we needed to address because we're human beings in Illinois especially," Pritzker stressed. "We care when people are suffering."
Illinois Democratic leaders celebrated after Gov. JB Pritzker signed the Fiscal Year 2025 budget on June 5, 2024.
The budget features nearly $1 billion in revenue enhancements to make the Democratic wish list possible. Under the plan, Illinois will eliminate the net operating loss deduction cap for businesses and triple the tax for sports betting companies. A coalition of Illinois bank and credit union organizations asked Pritzker to veto the legislation to prevent Illinois from becoming the first jurisdiction in the United State and the world to prohibit interchange on sales and excise taxes.
"A change to the payment system of this magnitude involving and impacting more than 7 million Illinois card holders, hundreds of thousands of Illinois merchants, and thousands of card-issuing banks, credit unions and processors cannot be implemented in a mere 13 months," the group stated. "Implementation of this act is completely unknown, as it has never been tested anywhere else."
Although, leaders noted that no one got everything that they wanted.
"As a mother who has to balance the check book every day for my home, being able to do it for the great 78, I'm going to tell you it's a little big harder," said Rep. Jehan Gordon-Booth (D-Peoria). "But, I will tell you that it's no different when you have the perspective of what it means to make decisions and make choices and you live with them."
Pritzker and Lt. Governor Juliana Stratton said they are proud of the $4.4 million investment to analyze the state's maternal mortality rate and a $5 million boost for the state's home visiting program to increase birth equity. Their proposal also included increased funding for safety net hospitals and nursing homes.
"This budget is more than just a financial plan," Stratton said. "It's a pledge to invest in our children, support our families and strengthen our communities."
The Pritzker administration also called for Illinois to eliminate the 1% grocery tax through a phase out plan starting in 2026. However, lawmakers gave local governments the authority to impose their own grocery tax to get that revenue.
Lawmakers approved a $198 million investment for the state's rainy day fund, as Illinois could face tough financial decisions over the next two years. Pritzker said the budget met the annual pension obligations and helped eliminate nearly all of the state's short-term debt.
House Speaker Emanuel "Chris" Welch (D-Hillside) said the spending plan prioritizes fiscal health, reflects the state's values and meets the needs of the most vulnerable.
"It was not easy getting there, but I do believe this budget continues to make Illinois a great place to live, work and play," Welch said. "This budget cuts debt, saves for our future and improves Illinois' credit all while making smart investments that will benefit future generations."
Senate President Don Harmon (D-Oak Park) thanked his colleagues in the Senate, Welch and Pritzker for all of their hard work to get the budget put together. He noted that the plan offers meaningful investments in the state's priorities and goals.
"Today, Illinois is stronger than it has ever been," Harmon said. "Over the past six years, we've overcome unprecedented challenges to truly turn around Illinois and set the course for a better tomorrow."
The Fiscal Year 2025 budget takes effect on July 1.
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