SPRINGFIELD, Ill. (WAND) — Illinois Democratic lawmakers passed a roughly $56 billion budget in the early morning hours of June 1.

Senate Democrats approved the Fiscal Year 2027 spending plan shortly after 3 a.m. Monday. Lead budgeteer Elgie Sims (D-Chicago) said the budget protects vulnerable residents while fully funding K-12 education and meeting pension obligations. The chief budgeteer said affordability and food security are central parts of the budget.

"It invests in our healthcare system, from safety-net hospitals who not only treat our state's most vulnerable, but also our economic drivers in our communities, to funding free and charitable clinics to serve people without insurance or who are underserved," Sims said.

Sims also said the proposal includes $45 million for property tax relief grants and $70 million to help people losing SNAP benefits due to restrictions approved by Congress. This program could provide eligible Illinoisans a one-time $400 to help buy food.

"We are facing a crisis," Sims said. "There are over 100,000 individuals who will lose SNAP benefits as a result of the actions from a hostile federal government. But we are responding directly to those challenges."

The budget does not include a 2% increase in the state's motor fuel tax, which would have been 1.3 cents for drivers. However, Republicans are furious that Democrats plan to take $150 million from the road fund to help with operational spending.

"We ought to be suspending the sales tax on motor fuel right now, not diverting it to the general revenue fund and not diverting it in oddly the exact same dollar amount as we've got for illegal immigrant healthcare and welcome centers," said Sen. Chapin Rose (R-Mahomet). "I mean, right there, if you eliminate those two things, you can give the people their surplus in sales tax back."

Republicans said they were glad to hear that Democrats plan to increase state funding for the local government distributive fund. Municipal leaders were concerned that they would see a cut in LGDF funding next year. Although, the budget did not reach the Illinois Municipal League's annual request of 10% of state income tax collections.

The Fiscal Year 2027 budget passed out of the Senate on a 37-21 vote. Sen. Doris Turner (D-Springfield) joined Republicans in voting against the spending plan.

The revenue proposal for this budget package includes a digital advertising tax, social media platform fee and a progressive tax on sports bets placed on prediction market sites. Democrats also included a privilege tax for fantasy contest operators and digital excise tax.

"It imposes a tax on distributors or remote retail sellers for tobacco products sold. It provides a partial redirect from the sales tax on motor fuel to GRF and the road fund," said Sen. Celina Villanueva (D-Chicago). "It implements a sales tax holiday from August 7th to August 16th for back to school shopping."

Yet, Republicans stressed this is the largest spending plan in Illinois history. Rep. CD Davidsmeyer (R-Jacksonville) told his colleagues the new taxes could lead to unintended consequences for individuals and families.

"At the end of the day, who pays a business's costs," Davidsmeyer asked. "It is the consumer, which is each and every one of us."

House Majority Leader Robyn Gabel (D-Evanston) noted the legislation shows compassion and sound financial planning in a moment of great uncertainty for many Illinoisans. She said budgeteers looked closely at the government efficiencies included in Gov. JB Pritzker's February budget proposal.

"This budget pushes state agencies to realize an additional $65 million in reductions to government operation, reducing administrative costs so we can fully fund services that communities so desperately need right now," Gabel said. 

Republicans are also concerned that Democrats included another cost of living adjustment for lawmaker salaries, which could see legislators earning $101,450. 

The budget proposal passed out of the House on a 76-39 vote around 4 a.m. It now heads to Gov. JB Pritzker's desk.

"Every element of the budget for the upcoming fiscal year was thoroughly deliberated with the aim of achieving widespread affordability for all Illinoisans," Pritzker said. "It builds upon seven years of fiscal discipline and efforts to make our state competitive in national and international industries."

Pritzker said he looks forward to signing the FY27 budget and delivering for Illinois working families.

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