What to know about Illinois FY2025 Budget

The legislature has approved the Fiscal Year 2025 budget which guides spending for the year that begins on July 1, 2024. As approved, it includes estimated revenues of $53.281 billion and spending of $53.074 billion. It is, once again, the largest budget in state history, and is even several hundred million dollars higher than the budget the Governor asked for in his budget address in February. Of most concern, this budget includes nearly $1 billion in tax increases.

A few 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
  • There is a new $14 million appropriation for the newly-established Early Childhood Department

Higher Education

  • There is an additional $30.6 million for a 2% increase to University and Community College operations
  • There is an additional $10 million 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 the cost of the FY24 Guidehouse rate increases for Direct Support Professionals effective January 1, 2024
    • This budget preserves the current number of Direct Support Professional 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 is receiving an increase of $66.5 million to support an expected increase in caseload
  • DCFS is receiving 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 only expected to increase by 0.1% over FY24, at a net cost of $14 million. This primarily due to downward enrollment trends, a shift 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
  • There is an increase of $22.6 million for the Department of Corrections to hire additional staff
  • There is 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 $322 million increase
  • Nothing in the budget addresses a Tier II budget fix

Non-Citizen Funding

  • Includes the Governor’s full request of $811 million
    • $629 million ($440 General Revenue Funds) for non-citizen healthcare
    • $182 million is included as part of a joint $321 million response with the City of Chicago and Cook County; $115 million will be provided through funding from Welcoming Centers and $67 million will be provided through the Home Illinois Program
    • Funding for non-citizens totals over $3 billion since FY23

Grocery Tax

The legislature also took action to eliminate the 1% grocery tax Illinoisans pay. As you know, 100% of the proceeds from this tax are channeled to municipalities to help balance local budgets. House Bill 3144 as amended eliminates the state’s 1% sales tax on groceries, effective January 1, 2026. Home rule communities already have the authority to implement a 1% local sales tax on groceries without going to referendum. HB 3144 allows non-home rule communities to institute a general merchandise tax via ordinance immediately once the bill is signed by the Governor, and then when the state grocery tax expires on January 1, 2026, non-home rule communities will then be able to implement a 1% local tax on groceries without going to referendum.

For more information, please contact State Representative Amy Grant’s District Office at 331-218-4182.

State Representative Amy Grant, is currently in her 3rd term as State Representative in the General Assembly. The 47th district is made up of several communities in DuPage County, including Naperville, Warrenville, Glen Ellyn, Wheaton, Lisle, Carol Stream, Bartlett, West Chicago, Winfield, and Wayne. Rep. Grant serves on the following committees: Adoption & Child Welfare, Elementary & Secondary Education: Administration, Licensing. & Charter Schools; Foster Care Placement Subcommittee, Housing, Judiciary – Criminal, Juvenile Justice and System Involved Youth Subcommittee; and Mental Health & Addiction Committee.