Gov. JB Pritzker has unveiled a budget proposal for the next fiscal year that increases spending by about $2 billion without raising income or service taxes. His plan, presented in Wednesday’s budget address, would bring total general revenue fund spending to $55.2 billion, a 3% increase.

The proposal relies on an expected $1.5 billion boost in tax revenue and $1.1 billion in spending reductions compared to a previous forecast. However, the administration warns that federal policy changes could impact projections. The Governor says that there is some good news and that things are better now than they have been. 

Governor Pritzker says that as the US economy slows, Illinois needs to tread much more carefully with how the state spends money.

Key spending highlights include a $350 million increase for K-12 education and a 3% boost for higher education. However, the Early Childhood Block Grant remains flat, and a health care program for low-income noncitizens aged 42-64—costing $330 million—would be eliminated, drawing opposition from Democratic lawmakers and advocates.

To generate additional revenue, the plan proposes adjusting casino tax rates, pausing a $171 million fuel tax transfer, and offering temporary tax amnesty to raise $198 million. Lawmakers must finalize a budget deal by the end of May.

Governor Pritzker then blasted the Trump administration warning Illinois that President Trump along with Elon Musk is coming for Illinois tax money.

Governor JB Pritzker gave his State of the State/budget address live on Wednesday afternoon on WTIM. Lawmakers and Governor Pritzker will have to come to an agreement on a spending plan by the end of May.