Delivered via email: February 19, 2025
Governor’s Budget Address
Today, Governor JB Pritzker delivered his seventh annual budget address to a joint session of the House and Senate. Back in November, the Governor’s Office of Management and Budget (GOMB) projected flat revenues in FY2026, which would result in a significant deficit for the FY2026 fiscal year. Today, GOMB announced revised FY2026 estimates that project Illinois to collect approximately $1.5 billion more than the November projections. Additionally, in his budget address, the Governor proposed several revenue adjustments that, if passed, would result in an additional $469 million in FY2026. The revised estimates along with the proposed revenue adjustments allowed Governor Pritzker to propose another balanced budget for FY2026 which includes $55.23 billion in state spending, a $2 billion dollar increase over FY2025. Pritzker emphasized that this is still a challenging budget year, adding that difficult decisions had to be made, including his recommendation to pause to the $75 million increase to the Smart Start Early Childhood grant.
Also of note, the Governor included a proposal of $78 million in his FY2026 budget to address the Tier 2 Pension Wage Base. This would address the federal safe harbor issue impacting several pension funds, including TRS. However, no money was proposed to address other Tier 2 benefits (e.g. lowering retirement age).
Although not related to the budget, the Governor did announce an initiative to ban cell phones in K-12 schools during classroom instruction. He emphasized that student use of cell phones in K-12 schools causes distractions, is an impediment to learning, and has led to an increase in cyberbullying. Several legislators have already introduced bills limiting the use of cell phones in K-12 schools, including Senator Cristina Castro, Representative Michelle Mussman, Representative Tracy Katz Muhl, and Representative Curtis Tarver, II.
Governor's Proposed Budget For K-12 Education
- Increase of $350 million to Evidence-Based Funding ($50 million earmarked for Property Tax Relief Grants)
- $19.9 million in increased funding to mandated categoricals (MCATS). This increase only impacts the Orphanage line item to ensure full funding for that line item. The following MCATs will be held flat to FY2025 levels: Regular Transportation (currently prorated at 79.9%), Special Education Transportation (currently prorated at 69%), and Special Education private facilities (currently prorated at 78%). Under this budget proposal the proration percentages to these MCATs will continue to increase.
- $1.3 million increase for Career and Technical Education (CTE), which represents a 2.3% increase when compared to this year's current budget.
- $45 million for the final year of the Teacher Vacancy Pilot Program, which represents level funding when compared to this year’s current state budget. This is the third and final year of the grant.
- $3 million to fund the ISBE State Literacy Plan Implementation, which represents level funding when compared to this year’s current budget.
- $3 million to the Computer Science Equity Grant Program, which represents level funding when compared to this year's current budget.
Governor’s priorities for Early Childhood Education
- $21.7 million in new state funding for the Illinois Department of Early Childhood. This is the second year of building up this new state department ($13 million was appropriated in FY 25) with the goal for it to start overseeing programs in July 2026.
- No increase for the Early Childhood Grant Funding (Smart Start Illinois) program). Early Childhood is a priority of Governor Pritzker and the proposed budget pauses a planned $75 million increase. The goal was to provide universal preschool by 2027 and the deferred increase represents 5,000 new early childhood slots. ($748 million is proposed to maintain level funding to FY2025).
- $3.3 million in continued state funding for the third year of the Dolly Parton Imagination Library early childhood literacy program. Over 61,000 children under the age of five have signed up to receive free books under this program. Currently 68 counties are full participants in the Imagination Library.
Governor’s Proposed Budget For Higher Education
- $10 million increase for a total of $721.6 million in Monetary Award Program (MAP) grants.
- $46 million (3%) increase in general funds for public universities.
- The Direct Admission Program Act - the Governor also announced support for a program that would require public colleges to establish and administer a direct admission program to automatically offer qualified high school seniors admission to public universities.
- A proposal to allow Community Colleges to offer four-year Baccalaureate Degrees for in-demand career paths (i.e. nursing, advanced manufacturing, early childhood education).
- $8 million for the Minority Teachers of Illinois (MTI) Scholarship, which represents level funding when compared to this year's current budget. As part of the MTI scholarship, one must agree to begin teaching at a nonprofit Illinois public, private, or parochial preschool, elementary, or secondary school that the Illinois State Board of Education has certified as a school with at least 30% minority students.
Before a budget can be enacted, the Governor’s proposal or an alternative budget must be acted on by the General Assembly. While there will certainly be changes over the next several months, the Governor’s budget address kicks off the discussion of the FY2026 budget.