IVCA Provides Updates for State Legislative Issues – 02/18/2026
IVCA Illinois Legislative Report
David Stricklin, IVCA Legislative Liaison, Stricklin & Associates
PRITZKER DELIVERS BUDGET ADDRESS TO ILLINOIS AND BEYOND
Widely expected to win a third term in November and to then announce at some point for a presidential run, Illinois Governor JB Pritzker today delivered his FY 2027 budget address to an audience of Illinois legislators and beyond. He proposed a Children’s Social Media Act, a ban on cellphones in classrooms, a program for affordable home ownership, and spoke about college affordability. The budget address and budget materials may be found here:
Fiscal Year 2027 Operating Budget
Fiscal Year 2027 Capital Budget
Fiscal Year 2027 Budget in Brief
FY 27 PRITZKER BUDGET ANALYSIS
Illinois is sailing into headwinds of uncertain policies from the federal government and the governor used that as a baseline for his address. The governor is also highlighting improvements in the state’s bond rating, pension debt and other examples of what his administration sees as fiscal responsibility – which may also play to a larger audience.
CRAIN’S ON GOVERNOR’S BALANCING ACT
Gov. JB Pritzker is proposing one of the smallest spending increases of his tenure, unveiling a $56 billion budget that would grow just 1.6% next year after years of rapid expansion — and amid growing uncertainty over federal funding and tax policy.
Pritzker is pitching a budget aimed at preserving fiscal stability without broad-based tax hikes. To make ends meet, Pritzker is proposing a tax on large social-media platforms and an increase in gaming taxes to equalize the rate between electronic and table gaming. The social-media tax would produce $200 million, which would be designated for education.
Revenue Proposals – $728 million
* $120 million – Realign the tax treatment for tables and electronic games at 15 of the 16
Illinois casinos (excludes the Chicago casino).
* $200 million – Social Media Platform Fee for larger social media companies that collect consumer data and sell to third-party buyers. [As reported elsewhere, this would go to education funding]
* $269 million – Adjust Net Operating Loss Deduction Cap sunset to a phased-in approach.
* $79 million – Redirect sales tax revenue from the sale of candy/soft drinks/grooming products from Capital Projects Fund to General Funds (FY27 only).
* $60 million – Reduce the LGDF distribution percentage from 6.47% to 6.28%.
There are voices in the Capitol who are clamoring for higher taxes on millionaires and billionaires – those calls are not recognized in the introduced budget.
One day before Gov. JB Pritzker’s scheduled budget address, Illinois’ four top legislative leaders briefed on the plan Tuesday agreed it will have to hew to the line in a tight fiscal year, with one Democratic leader saying he doesn’t expect the governor to embrace calls by some progressive lawmakers to more aggressively tax Illinois’ highest earners. “I’m expecting another responsible, balanced budget proposal from the governor. It’s, as I understand it, likely to be very much a maintenance budget. We’re living in uncertain times, and we don’t know tomorrow morning what tweet’s going to blow another hole in our budget,” Democratic Senate President Don Harmon of Oak Park said, referring to President Donald Trump’s penchant for policymaking via social media. […]
“I just have not heard any talk about the progressive revenue proposals,” [Harmon] added. “I have not heard the governor talk about the progressive revenue proposals that are being circulated.” […]
And funding is expected to stay relatively flat for a program that provides health insurance to some noncitizen immigrants older than 65, the sources said. A similar program for middle-age adults ended last year after Pritzker proposed cutting it.
ILLINOIS REPUBLICANS SAY PRITZKER MISSES THE POINT
After seven years in office, Illinois families are still being squeezed by high taxes, rising crime, and a governor who governs with arrogance instead of accountability. Governor JB Pritzker promised stability and progress, but his tenure has delivered bigger government, higher costs, and policies that continue to fail the people of Illinois.