Proposed Budget - Fiscal Year 2027
Illinois Governor JB Pritzker released his fiscal 2027 budget proposal on February 18, which calls for operating expenditures from all funds of $131.8 billion, a 1.7 percent increase from fiscal 2026. General fund expenditures are estimated to be $56.03 billion, a 1.6 percent increase from fiscal 2026 revised estimated spending. Total state expenditures are comprised of general funds (41.6 percent), special state funds (39.9 percent), federal trust funds (10.7 percent), debt service funds (3.4 percent), highway funds (2.9 percent), state trust funds (1.4 percent), and bond financed funds (0.1 percent). General fund revenues are estimated to be $56.06 billion, a 1.5 percent increase from revised fiscal 2026 estimates. The budget also includes a $2.4 billion rainy day fund, assumes a general fund surplus of $24 million, and reflects full payment of the fiscal 2027 certified pension contribution.
Proposed Budget Highlights
The governor’s budget proposal for fiscal 2027 is centered on making Illinois more affordable for working families while protecting the state’s long-term financial stability and addressing federal funding challenges. It builds on seven years of restored fiscal stability including lowering the state’s bill backlog, improving credit ratings, and rebuilding the rainy day fund. Additionally, it continues core investments in early childhood education and childcare, K-12 education, higher education, economic development, and efforts to fight poverty. Investment priorities include:
Early Childhood Education and Childcare Funding
- Includes the first year of full operational and programmatic funding for the Illinois Department of Early Childhood (IDEC) and maintains investments in the Early Childhood Block Grant funding.
- Other investments include Early Childhood Workforce Compensation Grants, increased participation in the Childcare Assistance Program, expansion of the Dolly Parton Imagination Library, and an increase for Early Intervention programs.
K-12 Education
- Continuing support of Evidence-Based Funding (EBF); increases school categorical grants; maintains Career and Technical Education programs; implements the Illinois Comprehensive Literacy and Numeracy plan; and funds the fourth year of both the Teacher Vacancy Grant Pilot Program and the Computer Science Equity Grant Program.
Higher Education
- Maintains the Monetary Award Program; provides a 1 percent increase for operating costs of public universities and community colleges; continues funding to support community college investments in dual-credit and non-credit workforce grant programs; maintains funding of the Diversifying Higher Education Faculty in Illinois program; supports Common App simplified admissions; and continues Early Childhood Access Consortium for Equity Scholarships, Golden Apple Scholars, and Golden Apple Accelerators.
Health and Human Services
- Improves access to housing by modernizing outdated building codes and legalizing family-friendly housing types; allowing developers to turn public transit parking spaces into more housing units; streamlining permitting processes; creating a new Missing Middle Housing Infrastructure Grant Program; providing funding for affordable housing programs; and funding down payment assistance.
- Protects the most vulnerable by hiring additional staff and updating eligibility determination systems for SNAP and Medicaid to comply with federal changes; funding the Home Illinois program; support for the Home Services Program for liability and caseload growth; opening additional mental health forensic beds; and maintaining funding for gun violence prevention programs.
- Department of Children and Family Services includes a 4.7 percent increase; addresses reimbursement rates to maintain a competitive wage structure; increases the department’s scholarship program; enhances support for relative caregivers; and supports Comprehensive Community-Based Youth Services.
- Healthcare and Family Services includes a 4.7 percent increase in general revenue and related funds; implements the Tailored Case Management Program; supports Healthcare Transformation 1115 Waiver; federal funds for Rural Health Transformation program; support for the Health Benefits for Immigrant Seniors program; and continues funding for the Medical Debt Relief Pilot program.
- Also includes an increase for the Community Care Program; funding for the Adult Protective Services program; support for reproductive care; funding for the Breast and Cervical Cancer Program and AIDS Drug Assistance Program; support for newborn screenings; and funds operations at the Quincy Veterans Home and the Chicago Veterans Home.
Public Safety and Violence Prevention
- Illinois State Police funding supports two new cadet classes; expenses related to STARCOM infrastructure; and annual repair and maintenance expenses.
- Department of Corrections includes an increase for personal services; hiring additional administrative staff and correctional officers; and the implementation of an electronic health record system.
- Department of Juvenile Justice includes increases to support staff and hire additional staff; annual repair and maintenance expenses; and an increase for contractual healthcare services.
Environmental, Natural, and Cultural Resources
- Maintains funding for the Department of Natural Resources; supports the continued operation of key capital programs; and provides funding for improvements at historic sites and state parks.
- Allows the EPA to meet enforcement responsibilities; provides for electric vehicle rebates; increases support for Brownfields Redevelopment Grant Program; and continues to provide funding for IIJA water infrastructure programs.
Growing the Economy and Modernizing Business Development
- Continues funding for core initiatives; provides funding for weatherization programs; modernizes the Research and Development Tax Credit; invests in new support to address food insecurity and food or pharmacy deserts; invests in training centers; supports community revitalization programs and site readiness programs investments; and improves short-line railway access.
- Includes an executive order directing state agencies to review ways to expedite permitting, reduce bureaucracy, improve coordination and implement solutions-oriented innovation.