CHICAGO– Illinois Gov. JB Pritzker on Wednesday laid out a $52.7 billion state spending plan with more money to address the migrant crisis, education and quantum computing, while proposing tax hikes that will mainly target businesses, including a major tax increase for sports betting.
The second-term Democrat characterized the proposed budget for the fiscal year that begins July 1 and represents a roughly 2% increase in spending as “focused and disciplined.”
“I wish we had big surpluses this year to work with to address all the real challenges we face,” Pritzker told lawmakers during the budget, combined with the annual State of the State address. This year the budget is tight, our budget house is in order and we can keep our promises to the people of Illinois.”
Funding for asylum seekers is expected to be one of the most contentious issues as lawmakers in the Democratic-majority House and Senate begin budget negotiations. House Speaker Emanuel “Chris” Welch has already convened a panel on newcomers, while Republicans vow to crack down on sanctuary laws. Illinois has already invested $638 million to address the crisis.
The budget proposal includes an additional $182 million for migrants, part of a joint funding plan with Cook County. The money would be used for “welcome center” services, such as coordinating housing and legal assistance, and a program to combat homelessness.
Chicago, which has allocated about $150 million in the city budget, is struggling to house and care for the nearly 36,000 asylum seekers who have arrived by buses and planes since 2022, largely under the leadership of Texas Gov. Greg Abbott. Although migrants are still arriving, the pace has slowed in recent weeks, coinciding with a dip at the border that was partly attributed to weather.
Abbott has said the federal government must act, but Pritzker has repeatedly blamed the Republican governor for creating a crisis that has been brutal on families. Pritzker sharpened the criticism during his speech, which comes as immigration has come to the forefront of presidential annual politics and Chicago prepares to host the Democratic National Convention in August.
“Abbott deliberately planned the arrival of these individuals at locations and times that would cause the maximum chaos for the city of Chicago and for the asylum seekers themselves,” Pritzker said. “Children, pregnant women and the elderly have been sent here in the middle of the night, far from our designated shelters, in freezing temperatures, wearing slippers and T-shirts. Think about that the next time a Texas politician wants to lecture you on how to be a good Christian.”
Late last year, Pritzker’s budget office had projected a deficit of nearly $900 million, but his budget office said Wednesday that the deficit is smaller than expected and outlined new revenues to help close the gap.
That includes more than doubling the sports betting tax – paid by casino sportsbooks – from 15% to 35%, raising an estimated $200 million. Pritzker also wants to limit a deduction that allows companies to reduce their taxable income on $526 million in savings.
The governor’s proposed budget also includes $500 million for quantum computing technology, including for a cryogenics facility.
Pritzker called education the “central thrust” of all six budgets he has presented and proposed another $150 million for an effort announced last year to have universal preschool in Illinois by 2027. Spending on primary and secondary education will also increase by about $450. million, including money for transportation and special education grants, a state literacy program and a teacher vacancy pilot program.
Pritzker also previewed a plan to tackle Illinois’ massive pension debt by raising the funding target from 90% to 100% and extending the payment deadline until 2048. For consumers, he threw in a permanent 1% sales tax on groceries , which was temporarily suspended. for one year in 2022.