Illinois House Passes $53.1 Billion State Budget with $750 Million Tax Hikes

Illinois House lawmakers approved a big spending plan, the largest in the state's history. This budget includes tax increases on sportsbooks, retailers, and other businesses. Lawmakers also voted for 5% pay raises for themselves and other state officials. The decision was tough, especially for Democrats up for reelection in more moderate areas. Governor J.B. Pritzker proposed tax increases of nearly $900 million, but lawmakers reduced it while increasing spending by $400 million. The budget aims to lower costs for working families and provide over $500 million in new funding for local governments. The tax package passed with 60 votes is expected to bring in about $750 million in new revenue. Lawmakers rejected a plan to increase income tax bills for many taxpayers. Instead, they introduced new tax credits to offset some of the tax increases. Retailers agreed to limit their sales tax discount to bring in an additional $101 million in revenue. Lawmakers also approved a measure to purchase Illinois residents' medical debt at a discount, providing debt relief for many families. The budget is about $2.7 billion higher than the current plan. The tax increases and spending adjustments are meant to support various government programs and services.