Week In Review: Budget, Higher Education, Natural Disasters & More

Governor Pritzker Needs a Dose of Reality

During an interview with Capitol News Illinois last week, Governor Pritzker dismissed state Republicans as “doom grifters” and “carnival barkers,” even suggesting they are rooting for Illinois to fail. The truth is, House Republicans have repeatedly offered real solutions for the challenges facing our state, only to be shut out of the legislative process by the Democratic supermajority.

The governor also made several claims that simply do not hold up to scrutiny. Here are the facts

House Republicans Offer Real Solutions

While the governor calls Republicans “carnival barkers,” it is his party that has shut them out of the legislative process, effectively silencing the voices of the districts they represent. Republicans have repeatedly put forward solutions on key issues, only to be ignored by the Democratic supermajority.

Governor Pritzker Is Cheering for Decline

If anyone is playing politics instead of working toward solutions, it is Governor Pritzker. Time and again, he has chosen political fights over cooperation with the federal government, even when it means Illinois families pay the price.
  • To make a political statement, Governor Pritzker refused to opt Illinois into the federal “No Tax on Tips” provision in the One Big Beautiful Bill, meaning hardworking service industry employees in Illinois must still pay taxes on tipped wages.
  • He has also failed to opt into the Educational Choice for Children Act, which would provide families with greater flexibility and relief when it comes to education costs, despite even the Democrat governor of Colorado saying it would be “crazy not to.”
  • During the 2025 veto session, Democrats decoupled Illinois from key federal tax provisions, a move expected to increase taxes on Illinois businesses by $390 million to $590 million.

Governor Pritzker’s Tax Hikes Are Crushing Working Families


Despite the governor’s claim that he has “lowered taxes on working-class people in this state,” the facts tell a very different story.

The State Board of Education Lowered the Bar


Governor Pritzker also criticized Republicans for not celebrating Illinois’ eighth-grade reading and math scores. What he failed to mention is that the Illinois State Board of Education lowered the proficiency standards, making the results appear stronger than they actually are.
Governor Pritzker can throw around insults like “doom grifters” and “carnival barkers,” but the reality is clear. His administration and the Democratic supermajority have shut Republicans out of the legislative process while continuing to push policies that raise costs on Illinois families.

Illinoisans deserve leadership focused on real solutions, not political attacks.

BUDGET
Illinois Revenue Estimate for FY27. As part of its work to help get a budget enacted for Fiscal Year 2027, which begins on July 1, 2026, the Commission on Government Forecasting and Accountability (CGFA) has issued its official Revenue Estimate for FY27.

The Commission estimates that FY 2027 General Funds revenues will total approximately $55.525 billion. This represents a decline of $458 million, or 0.8%, from the Commission’s revised FY 2026 forecast of $55.983 billion.

CGFA’s revenue estimate sets aside the revenue estimate that the Governor released, which relies on $728 million in tax increases and revenue shifts, even though they have not yet been enacted to balance his record $56 billion spending proposal. CGFA estimates $55.983 billion in general revenue for FY26, which is actually $755 million (1.4%) higher than what the Governor forecast in February. In line with this revenue estimation trend, CGFA’s FY27 revenue estimate is $199 million higher than the Governor’s estimate for FY27 based on current law (excluding the Governor’s proposed tax increases).

After adjusting out the Governor’s additional revenue, however, CGFA’s FY27 estimate is $529 million lower than the Governor’s estimate. Placing CGFA’s FY27 revenue estimate against the Governor’s $56 billion spending proposal results in a $500 million projected State deficit for FY27.

Below is a breakdown of that proposed revenue and tables from the CGFA report discussing the differences between the two estimates:

New Revenue Included in the Governor’s FY27 Budget Proposal

Legislative Change

$ Generated

Net Operating Loss Deduction

$269 million

Casino/Table Game Tax Increase

$120 million

Social Media Platform Fee

$200 million

Freeze LGDF at FY26 Levels

$60 million

Redirect State Share of Candy, Soft Drink, Grooming Tax

$79 million

Total

$728 million



Some additional key elements of CGFA’s revenue projections and findings are:

o Major challenges lie immediately ahead for the Illinois economy. For example, after consulting with outside analysts and looking at FY26 sales activity, CGFA see Illinois sales tax revenues going up less than 2% in FY27.

o This increase of less than 2% in taxable Illinois sales activity in FY27 comes despite the fact that outside analysts see current inflation rates as well above 2.0%, indicating that true sales tax activity in Illinois may actually be negative in FY27.

o A third traditional source of Illinois general funds revenues, corporate income tax, is projected to be sharply negative in FY27 under current tax law.

o FY27 revenues are projected to be $458 million less than the FY26 revenues, which could lead to the major Illinois tax hikes that are currently being pushed by Gov. Pritzker.

o These tax hikes, if enacted, will be on top of the ones that already make Illinois one of the highest tax states in the nation.

o Illinois’ government spending revenues for FY27 are moving towards a dangerous dependance on individual income tax payments, particularly individual income taxes paid through payroll deductions.

o Any significant downturn in Illinois employment numbers would have a serious negative effect on Illinois state government revenues.

o This effect would come at the same time as Illinois social services programs’ urgent need for more money, which our State always displays during economic downturns.

o The State of Illinois currently charges and enforces a near-record individual income tax rate of 4.95%.

· House Republicans Talk Business, Budget, Bears at Local Forum

House Minority Leader Tony McCombie took part in a bipartisan panel of Illinois legislators last week to discuss “Business, Budget & Bears” at a forum organized by the Schaumburg Business Association.

During the discussion, Leader McCombie and fellow House Republican Rep. Dan Ugaste highlighted affordability as a top priority when it comes to keeping both businesses and the Chicago Bears in Illinois. Both lawmakers emphasized the importance of easing financial pressures on families while reducing the heavy tax burden placed on Illinois residents.

“If we continue trying to tax our way out of long-standing fiscal problems, we’ll keep driving residents and businesses out of Illinois,” McCombie said. “That’s not a sustainable path forward for our state.”

Addressing this year’s proposed budget and a proposed $60 million reduction to the Local Government Distributive Fund (LGDF), McCombie warned that communities across Illinois are already feeling the strain.

“Sustainable reforms should solve the problem,” McCombie said. “Shifting costs onto local governments isn’t reform, it just forces communities to raise property taxes on the very families we should be helping.”

As property taxes continue to cause problems in communities across the state, Representative Dan Ugaste has filed relief proposals he says would provide immediate help. One of his bills, HB 9, would have provided $3.5 billion in property tax relief this past year alone.

“Our residents are fed up and taxed out,” said Rep. Ugaste. “The Chicago Bears should stay in Illinois but not at an unfair cost to taxpayers. This cannot be a one-time deal that only accommodates the Bears, but any relief should be extended to taxpayers across Illinois.”

ENERGY
Business coalition warns against phasing out use of natural gas in Illinois. A coalition of 19 manufacturer, business and labor organizations have petitioned to end ongoing workshops studying the future of natural gas in Illinois after a statewide resource adequacy report warned of energy shortages.

In their petition to the Illinois Commerce Commission filed Feb. 24, the coalition called continued efforts to phase out natural gas in Illinois “unreasonable and ill-advised.” The petition cited the report’s finding that Illinois still relies on natural gas, even as the state moves toward renewable energy sources and decarbonization goals.

Conducted by the ICC in partnership with the Illinois Power Agency and Illinois Environmental Protection Agency, the report assessed progress toward the state’s energy and emissions goals and measured the current and projected status of electric reliability.

Illinois aims to move to 100% carbon-free power by 2045, as mandated in the 2021 Climate and Equitable Jobs Act.

Read the rest of this story from Capital News Illinois.

HIGHER EDUCATION
Keicher Proposes the Fixing Illinois Higher Education Funding Act. As Illinois approaches a decline in the college-age population and interest groups push for more higher education funding, state leaders called for more data.

State Representative Jeff Keicher joined Mark Batinick, a senior fellow at the Illinois Policy Institute and a former state representative, to discuss concerns about the long-term sustainability of Illinois’ public universities.

Keicher is sponsoring House Bill 5037, which would direct a third party or the Illinois Board of Higher Education to study Illinois’ public universities and develop a 10-year roadmap to improve accountability, sustainability and affordability.

“Illinois cannot ignore the warning signs facing our higher education system,” Keicher said. “Enrollment has dropped dramatically, students are leaving the state for college, and demographic trends mean the challenges will only grow. We need a clear-eyed review of how our universities operate and how they are funded so we can protect students, taxpayers and the future of our workforce.”

Total enrollment in Illinois higher education has fallen about 29% since 2009, a loss of over 106,000 full-time students.

Because of a state funding formula that awards appropriations based on historical precedent, money is not flowing to the schools that students are choosing. As a result, the only three Illinois public universities with higher enrollment this fall than they had two decades ago — the University of Illinois at Urbana-Champaign, the University of Illinois-Chicago and Illinois State University — saw the largest declines in per-student state funding.

“Illinois needs a long-term strategy for higher education that focuses on students and outcomes. A comprehensive study will help identify cost drivers, improve transparency and ensure funding supports education results instead of outdated structures,” Batinick said.

Despite serving fewer students, Illinois provided public universities $24,562 in state funding per full-time student in 2023, the second-most nationwide and more than double the national average. Meanwhile, in-state tuition and fees have increased 66% on average since 2009, ranking among the highest nationwide.

Supporters of House Bill 5037 say the study would help lawmakers:

o Identify cost drivers and ensure that funding supports education outcomes rather than waste.

o Improve accountability and transparency for taxpayers.

o Develop a 10-year roadmap to make state universities more adaptable and affordable.

o Align higher education with Illinois’ current and future workforce needs.

“A stronger higher education system is essential to Illinois’ economic future. This proposal is about making sure our universities are prepared to serve students and compete in the decades ahead,” Keicher said.

NATURAL DISASTERS
Kankakee tornado causes death, destruction. Supercell thunderstorm activity struck Northeastern Illinois on Tuesday, March 10. The supercells included a large tornado, tentatively classified as an EF-3 twister. The tornado hit the Northeastern Illinois communities of Kankakee, Aroma Park, and adjacent rural areas. Other tornado activity was also seen by local residents and by radar.

Severe hailstorm activity also hit the Kankakee area and caused significant property damage, especially to motor vehicles and properties. One death was reported in the days after the tornado hit Kankakee County. Two deaths were reported after the same storms crossed the state line and entered nearby locations in Northwest Indiana.

The Illinois Emergency Management Agency – Office of Homeland Security (IEMA-OHS) maintains an online “Severe Weather Preparedness Guide” to help educate and better prepare Illinois residents for all hazards.