Illinois approves record-breaking fiscal year 2025 budget

The legislature has approved the Fiscal Year 2025 budget, guiding spending for the year beginning on July 1, 2024. The budget includes estimated revenues of $53.281 billion and spending of $53.074 billion, making it the largest in state history. It surpasses the Governor's February request by several hundred million dollars and incorporates nearly $1 billion in tax increases.

Key highlights from the new budget include:

**PreK-12 Education**
- Evidence-Based Funding is increased by $350 million.
- Special Education Student Transportation Mandated Categoricals are increasing by $30 million.
- Career and Technical Education Programs are increasing by $10 million.
- $45 million is allocated for year two of a three-year pilot program to improve the teacher pipeline.
- A new $14 million appropriation is set for the newly established Early Childhood Department.

**Higher Education**
- An additional $30.6 million is allocated for a 2% increase to University and Community College operations.
- An additional $10 million is provided for MAP grants.

**Human Services Agencies**
- DD grants and funding for Long-Term Care are increasing by $116 million.
- $100 million is included to annualize FY24 Guidehouse rate increases for Direct Support Professionals effective January 1, 2024, preserving current hours.
- DHS’s Operational Expenses Lump Sum is increasing by $116 million.
- Funding for DHS Welcoming Centers is increasing by $34 million.
- DHS’s Childcare Program receives an increase of $66.5 million to support an expected caseload rise.
- DCFS receives a $76 million increase primarily to hire an additional 392 child protection welfare staff and to annualize rate increases.

**HFS/Medicaid**
The Medicaid liability is expected to increase by only 0.1% over FY24 at a net cost of $14 million, mainly due to downward enrollment trends, shifts from the Cook County Trust Fund, and undocumented healthcare redeterminations.

**Public Safety Agencies**
There is an increase of:
- $5.3 million to fund two new State Police cadet classes,
- $22.6 million for the Department of Corrections to hire additional staff,
- And funding of $5.9 million for IYC-Lincoln to become operational in early 2025.

**Pensions**
Pensions are funded at the statutorily required minimum of $10.1 billion, a rise of $322 million with no addressal of a Tier II budget fix.

**Non-Citizen Funding**
The Governor's full request includes:
- A total allocation of over $3 billion since FY23,
-$811million including
-$629million ($440 General Revenue Funds)for non-citizen healthcare
-$182million as partofajoint$321million responsewiththeCityofChicagoandCookCounty;$115million through Welcoming Centers;and$67million through Home IllinoisProgram

Additionally, legislation was passed eliminating Illinois' 1% grocery tax effective January 1, 2026 (House Bill 3144). Currently channeled proceeds help balance local budgets but under HB3144 non-home rule communities will be abletoimplementa general merchandise tax via ordinance immediately once signedbytheGovernor,andwhen thestategrocerytaxexpiresonJanuary12026theywillthenbeabletoimplementa1%localtaxongrocerieswithoutgoingtoreferendum.