State budget reaction pouring in

A final $55.2 billion state budget has been passed by the Illinois General Assembly for FY 26.

Illinois Democrats introduced the budget Friday evening ahead of Saturday’s deadline to pass the spending plan. The 3,363-page proposal was unveiled after 6 p.m. Friday and raises about $1 billion in revenue.

It includes over $350 million in corporate income tax increases and creates new gaming taxes, short-term rental taxes, tobacco taxes, telecommunications taxes and increased fees.

The reaction came pouring in over the weekend after the budget approval.

“While we applaud the economic development package that aims to attract and retain good jobs and employers, we are disappointed by the costs on businesses contained in the final budget package which will harm the state’s business climate and growth opportunities,” said a statement released by the Illinois Chamber of Commerce.

Broad tax hikes are not being used the balance the budget, but the plan does call for specific tax increases in certain areas. While some businesses will pay more with the plan, the state constitution mandates the state corporate income tax remain flat.

This plan is basically in line with what Governor Pritzker proposed back in February during his budget address and talks in Congress have left some uncertainty surrounding state finances.