Illinois Governor to Deliver Budget Address

- The Governor's Office of Management and Budget has projected a budget deficit for the upcoming fiscal year, with some estimates reaching as high as $2.2 billion, driven by slowing revenue growth and increased costs for state services. In September 2025, Governor Pritzker directed state agencies to identify potential spending reserves of up to 4% to mitigate the impact of what he termed "disastrous economic policies" from the Trump administration. - A key point of contention is the rising cost of services for migrants, with Illinois having spent over $2.5 billion on healthcare and other support for asylum seekers by the end of 2025. For the upcoming fiscal year, the budget includes nearly $1 billion for migrant and refugee services, a figure that has drawn criticism as it is three times the state's spending on veterans. - To address revenue shortfalls, lawmakers have proposed the "Extremely High Wealth Mark-to-Market Tax Act," which would levy a 4.95% tax on the unrealized gains of assets held by Illinois residents with a net worth over $1 billion. This proposal, which would be the first of its kind in the world, would apply to a wide range of assets, including stocks, real estate, and private business interests. - Another proposal is a "millionaire's tax," which would add a 3% surcharge on incomes over $1 million. This could potentially allow for an increase in the state's corporate income tax rate, which is already the second-highest in the nation, to 15.22%, making it the highest in the U.S. - Governor Pritzker has been a vocal critic of former President Donald Trump's impact on the state's finances, stating that "Trump's reckless economic policies are wrecking state economies, stifling job growth, and increasing unemployment in key sectors." In a recent statement, Pritzker accused the Trump administration of attempting to "gut our government from the inside out" and urged a "no" vote on a federal continuing resolution. - The budget discussions are being led by key figures in the Democratic-controlled General Assembly, including Senate President Don Harmon and House Speaker Emanuel "Chris" Welch, who have emphasized the need for a "responsible, balanced budget" that invests in education and healthcare. - The fiscal year 2026 budget, outlined in House Bill 2755, includes several other tax changes, such as a reduction in the dividends-received deduction for Global Intangible Low-Taxed Income (GILTI) and a shift in how sales from combined reporting groups are apportioned. - The state is also facing a potential loss of over $700 million in federal funding for the Supplemental Nutrition Assistance Program (SNAP) due to a high error rate in administering benefits. Additionally, the Trump administration has cut $100 million in federal funding for various public health programs in Illinois.