(WBBM NEWSRADIO) — At his sixth State of the State Address on Wednesday, Illinois Gov. J.B. Pritzker pitched state lawmakers on a $52.7 billion 2025 spending plan that includes additional funding for the migrant crisis, education and quantum computing — while proposing tax increases that mostly target corporations and sportsbooks.
Overall, Pritzker’s budget projects a $128 million surplus and represents a roughly 2% increase in spending from the 2024 fiscal year.
That’s a big swing from a few months ago, when the governor’s office predicted the state would face a $891 million shortfall in the 2025 fiscal year, which begins July 1. Pritzker’s plan would erase most of that deficit with two moves: increasing the sports wagering tax paid by casinos from 15% to 35%, and capping a deduction that allows corporations to reduce their taxable income.
The administration expects those moves would lead to a combined $726 million in savings.
“I wish we had big surpluses to work with this year to take on every one of the very real challenges we face,” Pritzker told lawmakers in Springfield. “It’s important to note that, while this budget is tight this year, our fiscal house is in order, and we are able to keep our commitments to the people of Illinois.”
The budget proposal calls for $182 million in new funding to help support migrants in Illinois as part of a joint funding plan with Cook County. The money would be used for welcoming center services, such as coordinating housing and legal help.
As he’s done repeatedly, Pritzker on Wednesday blamed Texas Gov. Greg Abbott for manufacturing the crisis.
“Children, pregnant women and the elderly have been sent here in the dead of night, left far from our designated welcome centers in freezing temperatures, wearing flip flops and t-shirts,” Pritzker said. “Think about that the next time a politician from Texas wants to lecture you about being a good Christian.”
Following Pritzker’s address, Illinois Senate Minority Leader John Curran took aim at the new migrant funding.
“Gov. Pritzker just proposed raising taxes on Illinois families and businesses by more than $1 billion to pay for the migrant crisis he created,” he said. “Gov. Pritzker has systematically used Illinois tax dollars to create a non-citizen welfare state here in Illinois. Instead of course correcting, he’s doubling down on his non-citizen welfare programs and raising taxes to pay for them.”
Curran added: “The people of Illinois need tax relief, not new taxes.”
Business groups, including the Chicagoland Chamber of Commerce, also raised questions about the taxes.
“We are concerned about the lasting impact proposed revenue generators will have on small businesses still working to recover while facing existing regulatory and financial burdens,” the group said in a statement after the speech.
In addition to the funding for migrants, Pritzker’s budget calls for investing $150 million for a statewide effort announced in 2023 to have universal preschool in Illinois by 2027. He also asked for $12 million to create a Child Tax Credit.
“By targeting this investment at low- and middle-income families — with children under 3 — we can put money back in the pockets of our newest parents who need it most and make those early years just a little bit easier.”
On the health care front, Pritzker announced his proposal to eliminate $4 billion in medical debt for over 1 million Illinoisans.
The governor acknowledged Cook County Board President Toni Preckwinkle has already created a similar program for residents of her county.
“Treating a health emergency is not an optional expense, but too many Illinoisans have had their credit ruined or have been pushed into bankruptcy when they had one unexpected accident or one prolonged illness,” Pritzker said.
Pritzker also previewed a plan to address Illinois' massive pension debt by boosting the funding target from 90% to 100% and extending the payment deadline to 2048. For consumers, he pitched permanently repealing a 1% sales tax on groceries, which was temporarily suspended for a year in 2022.
The governor’s full 2025 budget proposal can be found here.
The Associated Press contributed to this report.
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