Pritzker Tax Blitz Sparks Illinois Fury

Illinois Democrats just unveiled a record $56 billion state budget that leans on new taxes and shaky assumptions—while families and local communities brace for the bill.

Quick Take

Gov. J.B. Pritzker’s FY2027 proposal would push Illinois spending past $56 billion for the first time, despite a projected $2.2 billion shortfall.
The plan banks on updated revenue assumptions, new taxes and fees, and one-time fund sweeps—moves that can mask deeper structural problems.
Businesses would face higher corporate-related tax burdens, plus a new social media platform tax and higher gaming-related taxes.
Local governments would take a hit through reduced state revenue sharing, shifting pressure onto municipalities already squeezed by high costs.

A Record Budget Built on Uncertainty

Gov. J.B. Pritzker delivered his eighth budget address on February 18, 2026, presenting a fiscal year 2027 spending plan totaling $56 billion, a new record for Illinois. The proposal arrives with a projected $2.2 billion shortfall and a major question mark hovering over federal dollars. Illinois has roughly $1 billion in federal funding tied up in a legal fight as the Trump administration pursues cuts, creating real risk for a budget that assumes stability.

Pritzker’s team describes the plan as restrained, citing a discretionary spending increase under 0.5% outside required categories. That framing matters politically, but the topline still grows by about $878 million over the current year, and the state is not proposing major program cuts. For taxpayers, the key issue is whether “discipline” is coming from genuine reform or from temporary balancing tactics that postpone hard decisions until after the next election cycle.

How Illinois Plans to “Balance” the Books

Illinois would balance the proposal using several levers: about $1 billion in updated revenue assumptions, roughly $589 million in new taxes and fee increases, and around $139 million in fund sweeps. Each tool can work on paper, but each also carries downside. Revenue forecasting can miss by wide margins, and one-time fund sweeps do not create recurring savings. When those gaps show up, lawmakers typically return to taxpayers, either through higher taxes or reduced services.

The proposal also keeps the existing pension funding schedule and makes the statutorily required contribution, with pension spending rising by about $192 million. That meets the letter of current law, but it does not erase the larger long-term weight pensions place on Illinois budgets. The research available does not include new structural pension reforms in this package, meaning the state’s long-term obligations remain a central driver of future budget pressure regardless of the talking points used in Springfield.

Targeted Taxes: Corporate, Social Media, and Gaming

Rather than broad-based increases on individual taxpayers, the budget leans on targeted revenue from the business sector. Companies would face about $269 million in additional corporate income taxes tied to extending a cap on net operating losses. On top of that, Illinois proposes a new social media tax aimed at platforms with at least 100,000 Illinois users, plus higher gaming taxes. Supporters call this “targeted,” but the economic incidence can still land on consumers, workers, and investment.

The social media tax stands out because it is a new category of state revenue with limited detail in the available reporting beyond a per-user structure. The research notes open questions on implementation mechanics and potential legal challenges. For conservative readers, the concern is less about defending Big Tech and more about normalizing a model where government taxes communication platforms by “users” inside a state border. Even if aimed at corporate giants, it establishes a precedent for expanding government reach.

Local Governments Get Less—And Residents Feel It

The proposal reduces revenue sharing with local governments from 6.47% to 6.23%, moving about $60 million from municipalities to the state’s general fund. That is not an abstract accounting tweak. Cities and towns rely on predictable state transfers for public safety, infrastructure, and basic services. When the state pulls money back, local officials often face two choices: cut services or raise local taxes and fees—both of which hit working families already dealing with high property taxes.

Flat Job Growth and Massive Debt: Pritzker’s Budget Undercuts His Presidential Ambitionshttps://t.co/SnKNLVOvqW

— RedState (@RedState) February 19, 2026

Education is also a mixed picture. The budget includes a $305 million increase for K-12 funding through the Evidence-Based Funding Formula, while discontinuing the Property Tax Relief Grant worth about $50 million. The net effect depends on the district, but the broader pattern is familiar: Springfield grows statewide spending while shifting pressure onto local taxpayers through reduced relief or reduced revenue sharing. The legislative process will determine what survives, but the math shows why Illinois taxpayers remain skeptical.