Summary

On February 21, Illinois Governor J.B. Pritzker proposed his FY 2025 budget. The FY 2025 proposal raises $52.993B and spends $52.695B, for a surplus of $289M. $170M of the projected surplus revenues would be set aside to put into the Budget Stabilization Fund at the end of the fiscal year. The budget contains $827M in new taxes but removes approximately $400M in annual revenue by eliminating the state’s 1% grocery tax. Additionally, it fully funds the state’s $10.1B FY 2025 statutorily required pension contribution.

Gov. Pritzker proposed a new pension ramp that would change the existing pension funding plan from 90% in FY 2045 to 100% in FY 2048. This would be achieved by allocating half of the funds currently being used to pay off bonds until FY 2030 and FY 2033 to make additional pension contributions after the bonds are retired. If this commitment is made now, it will save taxpayers an estimated $5.1B by FY 2045 and decrease the annual pension payment growth rate from 2.6% per year under the current 90% in FY 2045 ramp to 1.85% under the proposed 100% in FY 2048 ramp.

See below for a complete summary of Gov. Pritzker’s FY 2025 budget proposal.

FY 2024 Updates

• $52.216B revised revenue forecast, an increase of $199M since GOMB’s November 2023 revenue forecast.
• All FY 2025 budget proposal figures assume the enactment of a Gov. Pritzker’s proposed $1.183B General Funds ($1.377B all funds) FY 2024 supplemental budget.
• $273M projected surplus, after supplemental budget.
  • $205M in surplus funds set aside to be contributed to the Budget Stabilization Fund.

FY 2025 Budget Proposal

Topline Figures

• $52.993B General Fund revenues, an increase of 1.5% (or $777M) over current FY 2024 estimates.
  • Individual income tax projected to increase by $979M.
  • Corporate income tax projected to increase by $308M.
  • Sales tax projected to increase by $343M.
  • Other transfers-in are expected to decrease by $563M due to the one-time nature of many FY 2024 transfers.
  • Federal revenues are projected to decrease by $339M due to one-time retroactive Medicaid claim draws in FY 2024.
  • Other revenue adjustments.
    • $200M from an increase of the Sports Wagering Tax from 15% to 35%.
    • $526M from increasing the cap on the Corporate Net Operating Loss Deduction from $100,000 to $500,000.
    • $101M to the state and $85M to local governments for a cap on the sales tax retailers’ discount.
    • $175M from transferring mass transit costs from sales taxes to the Road Fund.
    • Permanently eliminates the state’s 1% grocery tax, a loss of approximately $400M per year in revenue.
  • $52.695B General Funds ($123.2B all funds) spending, a 2% (or $752M) increase over FY 2024 projected spending.
  • $289M projected surplus.
    • $170M set aside to be contributed to the Budget Stabilization Fund.

Paying Down Debt

• FY 2025 is projected to finish with less than $450M in accounts payable, down from a high of nearly $16.7B in November 2017.
  • $50M estimated accounts payable reduction in FY 2025.

Pensions

• $10.1B full payment of the certified FY 2025 statutory pension contribution.
• Estimated savings of $4.4B already enacted due to pension buyouts ($2.0B) and the $700M additional contributions above the statutory minimum in FY 2022 and FY 2023 ($2.4B).
• Proposed plan to fund pension at 100% in FY 2048, while still meeting the established 90% funding goal in FY 2045.
  • The $6B backlog borrowing General Obligation Bonds from 2017 will be retired in FY 2030.
  • The $10B pension funding General Obligation Bonds from 2003 will be retired in FY 2033.
  • Dedicate half of the revenue being used to pay off the 2017 and 2003 bonds to make additional pension payments once debts are paid off. This funding would be an additional approximately $250M per year between FY 2030 and FY 2033 and approximately $750M per year from FY 2034 to FY 2048.
    • Additional payments would begin in FY 2030 and expand in FY 2033 once the 2003 bonds are paid off.
    • If this commitment is made now, it will save taxpayers an estimated $5.1B by FY 2045.
    • It would decrease the annual pension payment growth rate from 2.6% per year under the current 90% in FY 2045 ramp to 1.85% under the proposed 100% in FY 2048 ramp.
  • Creates fixed length amortization strips beginning in FY 2035 to soften the potential shock of negative investment returns as the state approaches 100% funding.
• If necessary, adjust the Tier 2 pensionable earnings cap to the Social Security wage base for employees not coordinated with Social Security.

Capital Budget

• $3B in new bond fund appropriations to enhance the Rebuild Illinois capital plan.
  • $500M for new quantum-related investments.
  • $139M to DCEO for economic improvement programs, including:
    • $50M to prime sites.
    • $40M for sites development.
    • $25M for public infrastructure.
    • $24M to the manufacturing training academy.
  • $200M to serve as the state’s match to compete for $11B in federal CHIPS research and development funding.
  • $900M for maintenance and modernization of Department of Corrections facilities.
  • $575M for deterred maintenance and construction at higher education facilities.
    • $450M for universities.
    • $125M for community colleges.
  • $157M for additional funding to support construction of the new IDPH laboratory in the Chicago area and rehabilitation of the Carbondale laboratory.
  • $513M for deferred maintenance and construction at state facilities.
  • $100M to DCFS for a multi-year capital grant program to improve capacity for youth placement by increasing bed capacity system wide.
  • $65M for CDB to complete a new DoIT central computing facility.
  • $60M to DoIT to complete various technology projects.
  • $20M for a new Department of Military Affairs Illinois National Guard readiness center in Peoria.

Early Childhood

• $150M increase to Smart Start Illinois early childhood program in its second year, for a total funding amount of over $400M.
  • $13M to launch the new Department of Early Childhood.
  • $75M in additional ISBE Early Childhood Block Grant funding, for a total amount of $748M.
    • 5,000 new preschool slots in preschool deserts.
  • $200M investment in funding for Early Childhood Workforce Compensation Contracts.
  • $5M increase for the continued expansion of DHS’ Home Visiting Program.
  • $36.5M to support higher participation in the Child Care Assistance Program.
  • $5M in state funds for ECACE scholarships to replace discontinued federal funds.
  • $3.5M for the second year of the Dolly Parton Imagination Library.

K-12 Education

• $10.814B General Funds ($17.38B all funds) budget for ISBE, a $449M general funds increase.
  • $350M increase to evidence-based funding, for a total of $8.6B.
  • $30.7M increase in grants for transportation and special education, for a total amount of $1.1B.
  • $10.2M increase for career and technical education programs.
  • $3M increase for the State Literacy Plan implementation.
  • $45M for the second year of the Teacher Vacancy Grant Pilot Program.

Higher Education

• $2.55B General Funds budget for higher education.
  • $10M increase for MAP grants, for a total amount of $711M.
  • $30.6M increase to public universities ($24.6M) and community colleges ($6M) for operating costs.
  • $450,000 to extend the Common Application simplified admissions process to transfer students from community colleges.
  • Maintains budget of:
    • $10.75M for the teacher pipeline program for funding Golden Apple Scholars.
    • $5M for Golden Apple Accelerators.
    • $8M for Minority Teachers of Illinois.
    • $20M for the Pipeline for the Advancement of Healthcare Workforce Program.

Healthcare

• Funding to ensure the successful rollout of the state based marketplace.
  • $17.8M to the Department of Insurance and $6M to the Department of Healthcare and Family Services to support staffing, consumer assistance navigators, marketing and advertising, and costs for an enrollment website.
  • $6M increase for Get Covered Illinois.
• Birth equity investments.
  • $12M to create a new child tax credit equal to 20% of earned income for working families with children under the age of 3.
  • $4.4M to IDPH to assess the state’s maternal mortality rate and create an action plan that centers on reproductive care through community-based providers, supports community-based, full-spectrum care birth centers, and a state action plan.
  • $1M to DHA for a low-income diaper program.
  • $1M to DCEO for grants to providers to expand safe and accessible pregnancy support.
• $10M appropriation to fund up to $1B in medical debt relief.

Migrant Services

• Over 35,000 migrants arrived in Illinois over the last 18 months.
• $321M in estimated unfunded migrant service costs in calendar year 2024.
  • State of Illinois will spend $182M, or approximately 57% of all costs.
  • Cook County will spend $70M.
  • $69M budget gap, originally expected to be paid by the City of Chicago.
• Additional migrant services funding info is included under HFS and DHS.

Home Illinois

• $50M increase to the Home Illinois program under DHS.
  • $35M to maintain court-based rental assistance.
  • Over $181M to support unhoused populations seeking shelter and services.
    • Includes $52.4M to the Emergency and Transitional Housing Program.
  • $35M in rapid rehousing services.
  • $42M to maintain funding for current supportive housing for individuals.
  • Over $33M to provide street outreach, medical respite, re-entry services, access to counsel, and other shelter diversion supports.
  • $5M to DHS to convert temporary shelters to sustainable community assets.

Behavioral Health

• $35M to continue funding and implementing recommendations from the Children’s Behavioral Health Transformation Initiative.
  • $1.5M for the Behavioral Health Care and Ongoing Navigation portal developed by Illinois and Google Public Sector.
  • $31.3M for expansion of Comprehensive Community Based Youth Services.
  • $2M for pediatric mental health training.

Department of Human Services

• $7.282B General Funds ($14.248B all funds) budget for Department of Human Services.
  • $2.4B for services for people with developmental disabilities (DD) in support of the Ligas consent decree.
  • $116M general funds increase for these services, including:
    • Preserves over 2M statewide service hours for I/DD group home Direct Support Professionals.
    • $100M to fund for a full year the cost of the accelerated Guidehouse rate increase for Direct Service Providers effective January 1, 2024.
    • $30.1M for continued compliance with the Ligas Consent Decree, including $13.6M to annualize FY 2024 placements and $16.5M for 630 new placements.
    • $11.7M to adjust for the SSI increase of 3.2% for the Home and Community Based Waiver.
  • $36.5M increase for the Child Care Assistance Program.
  • $116M increase to support expected caseload growth and liability increases for the Division of Rehabilitation Services’ Home Services Program.
  • $182M through allocations of funding at Welcoming Centers ($115M) and Home Illinois ($67M) to provide emergency funding to asylum seekers.
  • $19M increase to support mental health care and treatment.
  • $30M in state funds to build upon initial federal investments for the Reimagine Public Safety grant program.

Healthcare and Family Services (HFS)

• $9.383B General Funds ($39.478B all funds) budget for HFS.
  • $26.8B projected all funds to Medicaid liability, an approximately 0.1% increase.
  • $497.9M increase to annualize funding for Medicaid rate increases effective mid-FY 2024.
  • $50M for a Medicaid tiered safety net hospital add-on.
  • $629M all funds ($440M covered by state General Funds) for the Health and Benefits for Immigrant Adults and Health Benefits for Immigrant Seniors programs.
  • $20.6M General Funds increase for Child Support Services.
  • $10M for a program to erase an estimated $1B in medical debts.

Department of Public Health (IDPH)

• $269.9M General Funds ($1.708B all funds) budget for IDPH.
  • $6M to hire 100 additional staff in the Office of Health Care Regulation.
  • $4M to create a reproductive care action plan.
  • $2M for grants for freestanding reproductive health care clinics and maintains funding of $18M to support existing reproductive health initiatives.
  • $400,000 for Homelessness Mortality and Morbidity Report.
  • $500,000 to fund community-based tuberculous prevention, follow-up, and treatment.
  • $45M ($15M General Funds and $30M in federal funding) to support IT replacement for Illinois’ National Electronic Disease Surveillance System (INEDSS) and Long-Term Care systems.
  • $8.5M maintained to respond to unexpected public health threats and emergencies.
  • Provides capital funding to adapt plans for a Chicago area public health laboratory and to rebuild the Carbondale public health lab.

Department on Aging

• $1.591B General Funds ($1.763B all funds) budget for the Department on Aging.
  • $104.4M increase for the Community Care Program.
  • $3M increase for the Home-Delivered Meals Program. The Aging Network provides more than 11M meals annually to homebound older adults.
  • Maintenance funding to support services in rural areas and increase outreach to minority communities.

Department of Veterans’ Affairs

• $169.4M General Funds ($237.5M all funds) budget for Department of Veterans’ Affairs.
  • $32M to onboard staff and welcome new residents at the Chicago Veterans’ Home.
  • Provides, in partnership with DHS, a program to assess the mental health needs of Illinois veterans.
  • $209,500 increase for the Homeless Veterans’ Program.

Department of Corrections

• $1.920B General Funds ($2.032B all funds) budget for the Department of Corrections.
  • $22.6M increase for staffing correctional facilities.
  • Continues funding to expand a federally funded construction workforce vocational training program.
  • Includes sufficient funding to cover increased medical expenses and food related costs.
  • Includes funding to implement an electronic healthcare records system.

Illinois State Police (ISP)

• $425.1M General Funds ($923.0M all funds) budget for ISP.
  • $5.3M to fund two cadet classes to hire 100 additional troopers.
  • $3.3M to maintain the Safe2Help tipline.
  • $2.6M to fund expenses related to in-car and body-worn cameras.
  • Includes additional funding to shift Tollway assigned troopers to ISP’s budget.

Illinois Emergency Management Agency and Office of Homeland Security

• $24.3M General Funds ($2.206B all funds) budget for Illinois Emergency Management Agency and Office of Homeland Security.
  • $3M for the Illinois Nonprofit Security Grant Program.
• $500,000 appropriation to the Office of Homeland Security to support reorganization efforts per Executive Order 2023-3.

Law Enforcement Training Standards Board (ILETSB)

• $4.0M General Funds ($149.6M all funds) budget for ILETSB.
  • Over $30M in available funds for the Law Enforcement Camera Grant Fund to provide reimbursement to local law enforcement agencies for in-car cameras, body-cameras, and data storage.
  • Provides funding for basic and in-service training for local law enforcement.

Illinois Criminal Justice Information Authority (ICJIA)

• $112.2M General Funds ($561.9M all funds) budget for ICJIA.
  • $200M to fund the Restore, Reinvest, Renew (R3) program to provide flexibility with the disbursement of additional grants.
  • Continues funding for the Violent Crime Witness Protection Program.
  • $1M for InfoNet – a reporting system for victim service providers.

Department of Juvenile Justice

• $138.4M General Funds ($151.4M all funds) budget for the Department of Juvenile Justice.
  • $5.9M for IYC-Lincoln to become operational.
  • $1.4M for healthcare services and increased programming.

Department of Commerce and Economic Opportunity (DCEO)

• $157.9M General Funds ($3.877B all funds) budget for DCEO.
  • $20M in capital funding to continue the Illinois Works Construction Pre-Apprenticeship Program.
  • $1.4M for the Illinois Works Administration to support the Bid Credit IT system development project.
  • $10M in additional funds for the Illinois Grocery Initiative to address food insecurity in urban and rural food deserts.
  • $30M for the Fast-Track Workforce program to provide employee screening, recruitment, and job training development to employers.
  • Creates and funds a new Chief Workforce Officer position.
  • Continues to leverage any remaining funds from the $400M Invest in Illinois Act from FY 2023.
  • $2.5M to promote tourism at destinations around the state and grow the outdoor recreation economy of Illinois.
  • $10M to continue a multi-year initiative to develop and implement a one-stop business portal to assist entrepreneurs wishing to create new business or relocate business to Illinois.
  • $25M for competitive business development capital grants to expand, rehabilitate, or relocate private business to Illinois.
  • $2M to continue the annual rural economic development program funding.

Department of Children and Family Services (DCFS)

• $1.478B General Funds ($2.36B all funds) budget for DCFS, an increase of $76.2M over FY 2024.
  • Funding to hire 392 additional positions to support DCFS caseloads.
  • $50.3M increase to continue rate reform for private sector providers to address the staffing shortages of social services workers at DCFS and partner agencies.
  • $38.9M increase to continue the rollout of the Comprehensive Child Welfare Information System.
  • One-time $100M investment for the level of care support services and capital grants to providers.
  • $10M increase for worker and private sector partner security investments.

Department of Natural Resources (DNR)

• $93.3M General Funds ($669.4M all funds) budget for DNR.
  • Funding for DNR to increase their headcount by 100 to modernize and rebuild staffing at state parks, historic sites, and operation of the Illinois State Museum system.
  • $30M to support the continued operation of key capital programs such as the Open Space Lands Acquisition and Development grant.
  • $2.5M in new funding for the Youth and Young Conservation Education program to create opportunities for underserved and underrepresented youth to receive jobs and education within environmental conservation.

Environmental Protection Agency (IEPA)

• $931M all funds budget for IEPA.
  • $12.0M to fund electric vehicle rebates.
  • $662M to continue providing funding for IIJA water infrastructure programs.
  • $20M for new Lead Service Line Replacement Inventory grants.
  • $10M for the Great Lakes Environmental Justice Project to fund environmental projects in underserved communities.
  • $70M for opportunities to address emerging PFAS pollution and other contaminants in small and disadvantaged communities.

Illinois Arts Council

• $25.58M General Funds ($26.9M all funds) budget for the Illinois Arts Council.
  • $10M to expand grant programs for arts organizations and individuals.