Illinois Legislators Introduce $55.2 Billion Budget Relying on Tax Hikes and Health Care Cuts

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ICARO Media Group
Politics
01/06/2025 07h42

### Illinois Unveils $55.2 Billion Budget Amid Controversy Over Tax Hikes and Health Care Cuts

SPRINGFIELD — After prolonged and challenging negotiations, Illinois legislators on Friday revealed a $55.2 billion budget proposal that aims to cover a $1 billion shortfall through increased taxes on gambling, tobacco, and vape products. Additionally, the budget includes an amnesty program targeting delinquent tax payments.

The budget, disclosed just 30 hours before a critical deadline, adheres closely to the spending guidelines set forth earlier this year by Governor JB Pritzker. The proposal, however, is approximately $200 million less than the governor's initial February projection.

One of the most contentious points of the budget is the estimated $1 billion in new revenue generated largely through so-called "sin taxes." Legislators took the significant step of raising taxes on casino table games, tobacco products, and vaping items to secure these funds. Besides, an amnesty program aims to collect more revenue from tax delinquents.

Another notable and controversial aspect of the budget is the reduction of $400 million from the Health Benefits for Immigrant Adults program. This cut jeopardizes the health care coverage for nearly 33,000 people aged 42 to 64 without legal status in Illinois. Democratic Sen. Elgie Sims of Chicago, the principal budget negotiator, said the adjustments were a response to anticipated federal funding cuts, adding that there are no comprehensive tax hikes in this budget.

The proposal also includes a near 5% salary increase for legislators, which officials attribute to inflation adjustments. As a result, legislators' annual salaries will rise to $98,304 from $93,712. However, comprehensive details on new tax increases remain unavailable.

Governor Pritzker and legislative leaders, including Illinois Senate President Don Harmon and House Speaker Emanuel "Chris" Welch, expressed confidence in passing the budget without significant internal conflicts. However, dissent remains, particularly among the General Assembly's Latino Caucus, led by state Rep. Lisa Hernandez, who condemned the health care cuts.

Amid fierce debates, Republicans in the state house continue to scrutinize the proposal. GOP chair Kathy Salvi criticized the budget, arguing that it unjustly burdens Illinois families while funding what she describes as "do-nothing policies."

With the looming deadline, legislators are under pressure to pass the budget by midnight Saturday to avoid requiring a three-fifths majority vote, a threshold that could prove challenging even for the Democratic supermajorities in this tumultuous budget year.

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

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