Illinois legislature approves record-breaking FY2025 budget

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

Key allocations within the new budget are as follows:

**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 receive an additional $10 million.
- $45 million is allocated for the second year of a three-year pilot program aimed at improving the teacher pipeline.
- A new appropriation of $14 million is designated 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.
- MAP grants see an increase of $10 million.

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

**HFS/Medicaid**
The Medicaid liability is expected to rise by only 0.1% over FY24, with a net cost increase of $14 million due mainly 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.
- The Department of Corrections receives an additional $22.6 million to hire more staff.
- IYC-Lincoln gets funding of $5.9 million to become operational in early 2025.

**Pensions**
Pensions are funded at the statutorily required minimum of $10.1 billion, reflecting a rise of $322 million. However, nothing in the budget addresses a Tier II pension fix.

**Non-Citizen Funding**
The budget includes the Governor’s full request of:
-$811 million
-$629 million ($440 General Revenue Funds) for non-citizen healthcare
-$182 million as part of a joint response with Chicago and Cook County; with funds provided through Welcoming Centers and Home Illinois Program

Funding for non-citizens totals over $3 billion since FY23.

**Grocery Tax**
Legislation was passed to eliminate Illinois' 1% grocery tax effective January 1, 2026. House Bill 3144 allows non-home rule communities to institute a general merchandise tax via ordinance immediately once signed by the Governor. Upon expiration of the state grocery tax on January 1, 2026, these communities can implement a local grocery tax without going to referendum.

For further information, contact State Representative Amy Grant’s District Office at 331-218-4182. Representative Grant is currently serving her third term in Illinois’ General Assembly representing several DuPage County communities including Naperville and Wheaton among others.