Illinois Democrats Swiftly Approve $55.2 Billion Budget Amidst Republican Backlash

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ICARO Media Group
Politics
01/06/2025 17h07

**Illinois Democrats Pass $55.2 Billion Budget Amid Republican Criticisms**

Late Saturday evening, Illinois Democrats swiftly approved a $55.2 billion budget for the upcoming fiscal year, raising several taxes and fees to support the plan. The new budget, which lawmakers had little time to review publicly, is backed by $55.3 billion in revenue, including over $1 billion from new taxes and revenue modifications.

Despite the short window for public scrutiny, the budget package, comprising four bills, was pushed through in the final 48 hours of the legislative session. This represented a 3.9% spending increase from the current year, positioning Democrats in heated standoffs with Republicans over the rushed process and perceived lack of spending cuts. Notable new taxes include increased rates on nicotine products, sports betting, and foreign business incomes.

Key measures included a new $100 million "emergency" fund under the governor’s control, aimed at buffering against federal policy uncertainties. In addition, spending for Federally Qualified Health Centers rose by $40 million to enhance healthcare services for low-income residents. Education funding saw a boost, too, with $307 million allocated for K-12 schools under the state's evidence-based funding model, although the proposal fell short of adding another $43 million in property tax relief funds.

Meanwhile, efforts to increase transit-related taxes did not gain traction. A proposed bill to levy a $1.50 fee on food and package deliveries, along with taxing electric vehicle charging statewide, failed to pass but may resurface later in the year.

In terms of business impacts, the budget extends taxes to sales from out-of-state and international businesses, affecting giants like Amazon. Furthermore, the budget introduces new taxes on vaping products, enhances efforts to collect delinquent taxes, and reallocates motor fuel tax revenues to cover short-term financial needs.

Despite the contentious atmosphere, the budget did not include a funding provision for a new Chicago Bears stadium, sparking further controversy. However, a $5 million grant was earmarked for NASCAR's upcoming downtown Chicago race, and the PGA Tour will receive $1 million for the 2026 President's Cup in DuPage County.

Governor JB Pritzker has expressed his intention to sign the budget. As the hours counted down to the midnight deadline, the legislative efforts underscored a significant fiscal strategy driven by new revenue streams and criticized for its expedited passage and controversial allocations.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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