Posts Tagged ‘Illinois Department of Children and Family Services’
Pritzker proposes $56B budget with minimal new spending, tax on social media companies
The plan includes new taxes on social media companies but keeps spending relatively flat from the current year.
Read More‘I have work to do,’ Pritzker says in launching third-term reelection bid
Capitol News Illinois
CHICAGO — In a hot gymnasium on Chicago’s South Side, Gov. JB Pritzker announced Thursday morning he’s running for a potentially historic third term as governor.
In his announcement speech, Pritzker said he is running to “protect” the story he’s been telling about Illinois — one that has been built largely in opposition to the politics of President Donald Trump.
Pritzker said his third term would focus on grappling with artificial intelligence, addressing the rising cost of living, continued spending on infrastructure and growing the state’s economy.
The field house at Grand Crossing Park where Pritzker launched his first campaign hosted a crowd of Pritzker’s invited supporters, including Democratic party officials, campaign operatives and long-time Pritzker supporters.
Read more: Pritzker calls for mass mobilization as he grows his national profile
Pritzker’s message has often focused on what Democrats need to do to win and push back on Trump, including addressing economic issues for the middle class and being outspoken against Trump’s policies.
“While it is certainly tempting to lay all of this at the feet of the megalomaniac narcissist in the White House and his malignant clown car in Congress, the hard truth is, we all share some of the blame,” Pritzker said.
The governor said “we must reckon with the fact that everything is too damned expensive,” but taking a shot at Republicans, said enacting budget cuts to key government programs like Medicaid that make life more affordable for people shouldn’t be the solution.
Gov. JB Pritzker and his wife, MK Pritzker, wave to supporters at a June 26 rally to launch JB’s third gubernatorial campaign. (Capitol News Illinois photo by Andrew Adams)
The governor also said a third term would continue his past efforts to protect abortion rights, diversity programming in the private sector and teachers’ ability to teach “uncensored history.”
Pritzker’s progressive stances on hot-button national issues are part of what has grown his national profile since President Donald Trump took office in January.
The governor has been one of the president’s most vocal Democratic critics and his schedule has been loaded with national media interviews and campaign speeches around the country.
From reelection to presidential election?
A successful reelection could set the stage for a bigger one: Pritzker’s speculated 2028 presidential campaign.
Pritzker on Thursday downplayed the possibility when speaking to reporters but didn’t explicitly rule it out.
“Everything that I do, truly everything that I do, in my job and every day when I wake up is about improving the lot of the people who live in the state of Illinois, lifting up the working families of Illinois,” Pritzker said. “Whatever I do going forward is going to be about that.”
He had a small taste of presidential campaigning last year when he was considered as a running mate for former Vice President Kamala Harris, then served as a surrogate.
“You don’t get on that list unless they think you actually could be president of the United States and do the job if you had to,” Pritzker told reporters last year.
As some Democrats have tried finding a centrist message, Pritzker has stayed in the left lane. He condemned politicians, without mentioning specific names, who abandon their core beliefs for political gain.
“Of all the unbecoming qualities that Americans hate in their politicians – they hate cowardice the most,” Pritzker said. “I’d rather lose standing up for what I believe in than win by selling out those who believed in me.”
Read more: Pritzker balances messaging as some Dems encourage party to avoid LGBTQ issues
As Pritzker rattled off a list of accomplishments in his more than six years as governor, his message remained the same as it has since he launched his first campaign in 2017 to unseat an unpopular Republican incumbent: fight.
“Let me be clear: There is no Mission Accomplished banner to stand under today,” Pritzker said alluding to a premature victory declaration former President George W. Bush made in a 2003 speech regarding military action in Iraq. “Yes, we have addressed so many of our old problems – but new ones always arise. History is an endless relay race. Our job is not to look for the finish line but to protect the baton as we run our assigned leg. But we have work to do. I have work to do.”
Gov. JB Pritzker speaks to supporters at a campaign launch rally in Chicago on June 26, telling them in his speech “I have work to do.” (Capitol News Illinois photo by Andrew Adams)
Pritzker argued his success has come through embracing his role as a cheerleader for the state, recalling the negative perceptions of Illinois, such as the prevalence of corruption and unbalanced budgets, that had consumed state politics.
“When I was first elected, I told you I was prepared to be a happy warrior on behalf of our state, even if it meant going it alone,” Pritzker said. “I suited up to face the carnival barkers and misery spelunkers and doom grifters. I handed out optimism like a shot of Malört – as a swift jolt to the heart.”
First three-term Democrat?
The 60-year-old Democrat enters the race as the favorite, having received more than 54% of the vote in the 2018 and 2022 elections.
An heir to a fortune built on the Hyatt Hotel chain, Pritzker’s net worth sits at $3.7 billion as of Thursday, according to Forbes. His vast personal wealth makes him one of the richest politicians in American history and gives him a significant leg up on competitors. Pritzker dumped $350 million into his first two campaigns and has never taken outside contributions.
Separately, Pritzker has used an undisclosed amount of his personal fortune to fund a political action committee, Think Big America, to support abortion rights in other states.
Pritzker is also entering unchartered territory for Illinois governors. If he completes his current term, he would be the first Democrat to serve two full terms in modern state history. If he wins reelection, he would be the only governor to serve more than two terms since Republican Gov. Jim Thompson served four terms from 1977 until 1991.
Pritzker will need a new running mate first, however, as Lt. Gov. Juliana Stratton is running for U.S. Senate. Pritzker did not announce a running mate Thursday.
Pritzker’s governing record
The governor’s top priority for his second term was to eliminate child care deserts and make preschool more accessible. Since he was sworn in in January 2023, the state has implemented Pritzker’s Smart Start initiative to expand preschool offerings around the state and has begun to phase in a new Department of Early Childhood.
When asked about those goals after his speech Thursday, Pritzker said there were an “awful lot of things” that his administration still needed to accomplish.
“We still need to get to universal preschool. We’re on our way. It’ll happen probably in 2027,” Pritzker said.
But Pritzker pointed to several of his progressive policy wins Thursday, in his speech and when speaking to reporters.
He has signed legislation raising the minimum wage to $15, legalizing recreational cannabis, banning assault weapons and numerous new protections of abortion rights since Roe v. Wade was overturned three years ago. Pritzker also passed landmark legislation to phase out fossil fuels in the electricity sector.
Pritzker repeatedly brought up cleaning up Illinois’ fiscal house. The state has recorded budget surpluses in recent years and has received nine credit upgrades since he took office.
But challenges are also growing. The budget has gotten tighter, and lawmakers have resorted to more than $1 billion in targeted tax increases over the last two years to balance the budget. The fiscal year 26 budget Pritzker signed this month increased discretionary spending by less than 1%.
Gov. JB Pritzker highlights his progressive wins and criticizes Republicans in a speech to supporters in Chicago on June 26. (Capitol News Illinois photo by Andrew Adams)
There’s also been headaches over legislative priorities. Labor unions are frustrated Pritzker didn’t embrace their proposal for pension reform this spring. And many parts of the governor’s legislative agenda hit roadblocks with concerned lawmakers. There’s also ongoing discussions about achieving Pritzker’s bold clean energy goals as prices rise and energy supply is strained.
The governor has taken pride in growing state agencies decimated by the two-year budget impasse that began a decade ago. But problems at those agencies have caused trouble for Pritzker.
An audit revealed the Department of Public Health failed to intervene to stop deaths from COVID-19 at the LaSalle Veterans’ Home in 2020, though Pritzker blamed and fired leaders at the Department of Veterans’ Affairs. Billions of pandemic relief dollars at the Department of Employment Security went to fraudsters, while the Department of Children and Family Services faced years of scrutiny over deaths and the its failure to properly house children in its care while Pritzker maintained support for the department’s director.
GOP criticizes ‘stepping stone’ approach
As problems have mounted at the Statehouse, Senate Republicans have encouraged Pritzker to “think Illinois.” As he announced his campaign Thursday, Illinois Republicans continue to believe his focus is elsewhere.
“These last nearly eight years under his governance merits firing not rehiring,” Illinois GOP Chair Kathy Salvi said in a statement. “While businesses and families flee, Pritzker sees Illinois as nothing more than a stepping stone for the White House.”
A field of Republican challengers is still taking shape. So far, DuPage County Sheriff James Mendrick, Posen Park District Commissioner Phil Perez and Lake Forest businessman Joe Severino have announced they will run in the Republican primary.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
The post ‘I have work to do,’ Pritzker says in launching third-term reelection bid appeared first on Capitol News Illinois.
Pritzker signs $55.1B state budget reliant on $700M of new taxes
Capitol News Illinois
Gov. JB Pritzker signed Illinois’ fiscal year 2026 budget into law Monday, taking shots at President Donald Trump’s budget management to defend hard choices state lawmakers were forced to make this year.
The $55.1 billion spending plan set to take effect July 1 is the largest in state history and is supported by $55.3 billion in anticipated revenue, including more than $700 million in new taxes and more than $500 million in one-time revenues.
Democrats approved the budget shortly before midnight on May 31 with only a handful of Democrats opposing it and all Republicans unanimously voting against it.
The budget’s passage came after months of discussion about closing an initially projected $3 billion deficit and growing concerns about Trump’s treatment of state funding in Washington. Pritzker, a possible 2028 presidential candidate, used Monday’s budget signing ceremony in Chicago as an opportunity to draw a contrast between his and Trump’s budgets.
“While the Trump administration goes on Fox News lying about being fiscally responsible, Illinois is showing a better way: Balancing the budget while maintaining the programs that most people rely on,” Pritzker said.
“Congress is about to pass a federal budget that has one of the largest budget deficits ever in a year without a war or a pandemic. By contrast, Illinois is balancing its budget and prudently improving its fiscal condition,” he said.
Pritzker and other Democratic leaders acknowledged that crafting the FY26 budget was challenging but continues to make investments Democrats believe are priorities. Discretionary spending will increase by less than 1% in FY26, Pritzker said. Despite the minimal increase, the FY26 budget still spends about $2 billion more than FY25.
Democrats “ace the challenges and uncertainty head on, and the result is a budget that is truly balanced with no gimmicks,” House Speaker Chris Welch, D-Hillside, said.
But that’s not how Republicans view the budget’s fund sweeps and delayed transfers that free up hundreds of millions of dollars that can be used in FY26.
“This approach sets Illinois up for failure by FY27 and continues a pattern of short-term thinking,” House Minority Leader Tony McCombie, R-Savanna, said in a statement.
Senate Minority Leader John Curran, R-Downers Grove, condemned lawmakers for failing to deliver significant tax cuts since Pritzker took office in 2019 when Illinois’ budget totaled about $40 billion.
“You know it’s a bad budget when it’s based on nearly $1 billion in tax increases and enhancements,” he said in a statement.
The governor also used his broad authority to reduce a pair of technical errors in the budget. The changes lower spending by $161.2 million from what lawmakers passed.
Tax increases on tobacco and vape products, businesses
The tax plan will raise $709 million in new revenue through what House Majority Leader Robyn Gabel, D-Evanston, characterized as “smart new sources of revenue.” They include new taxes on businesses, sports betting and tobacco and vape products, according to a list provided by the Senate Democratic caucus.
The budget will not raise personal income, corporate income or sales taxes after Pritzker told reporters that he will veto any budget containing “broad-based” tax increases just days before the bill passed.
Sen. Elgie Sims, D-Chicago, discusses the state budget at a June 16 signing ceremony. Sims is the chief budget negotiator in the Senate. (Capitol News Illinois photo by Andrew Adams)
The largest sum of new taxes – $336 million – are on businesses outside of Illinois that lawmakers call “leveling the playing field” and will require businesses to pay more income tax to the state on their profits.
Consumers will face new taxes on specific items, including taxes on tobacco, vaping and other nicotine products, which are increasing to 45% to raise $50 million. An existing telecommunications tax will also rise from 7% to 8.65% and raise $49 million to fund the statewide 988 hotline.
A new tax on sports bets will charge betting sites 25 cents for the first 20 million wagers and 50 cents for each bet following that. It’s projected to raise $36 million. Sports betting sites FanDuel and DraftKings have both announced they will implement 50-cent transaction fees on Illinois customers in response to the tax.
Short-term rentals will have to begin paying the state’s hotel operator’s tax. The charge is already applied to hotels in the state, and Airbnb already pays it voluntarily, but more companies like Vrbo will now be required to pay the tax expected to raise an additional $10 million.
A pair of tax amnesty programs are expected to raise $228 million. Those programs are meant to incentivize taxpayers to pay overdue taxes.
Fund sweeps, delayed transfers free up more for spending
The budget deploys a series of tactics designed to free up more money for spending in the general fund in FY26 without repeating as a revenue source for the following year’s budget.
It suspends the monthly transfer to the “rainy day” fund for one year, freeing up $45 million for general fund use. Pritzker has taken pride in the fund’s increase in recent years as it’s grown to a balance of $2.3 billion, up from less than $60,000 when he took office. The fund is still estimated to grow by $161 million from interest and contributions from other funds in FY26.
Read more: Illinois’ $55.2B budget ‘incomplete,’ Civic Federation president says
The state will also pause the final transfer of motor fuel sales tax revenue to the road fund in order to free up $171 million. That scheduled transfer was set in motion by the state’s 2019 infrastructure plan, with the sales tax supporting bond debt taken out to complete road and bridge projects. This year was to be the final year of incremental transfers that took place over the past five years.
Gov. JB Pritzker speaks before signing Illinois’ fiscal year 2026 budget on June 16. Also pictured, from left to right: Sen. Elgie Sims, D-Chicago; Rep. Will Guzzardi, D-Chicago; Lt. Gov. Juliana Stratton; Rep. Kam Buckner, D-Chicago; House Speaker Emanuel “Chris” Welch, D-Hillside. Rep. Eva-Dina Delgado, D-Chicago, is not shown.
The budget package also establishes a new $100 million BRIDGE fund that the governor can tap into “in the event of unanticipated delays in or failures of revenues.” The measure, an apparent nod to the uncertainty of federal funding amid ongoing congressional budget negotiations, will come from money swept from 57 different funds.
When combined with the tax amnesty program, the fund sweeps and delayed transfers add up to at least $544 million of one-time revenue in this year’s state budget that will not be available in FY27.
Health and Human Services
The most notable change to health care funding is the elimination of the Health Benefits for Immigrant Adults, or HBIA, program that provided certain low-income noncitizens between ages 42 and 64 with state health care benefits akin to Medicaid. Eliminating the program saves the state $330 million, but the $110 million Health Benefits for Immigrant Seniors, or HBIS, remains in place.
“This was part of the challenge that we had to address,” Pritzker said. “It was a program that had been growing significantly in cost. I do believe that everybody should have health care. I also know that we have to live within our means in the state of Illinois.”
HBIA’s elimination comes after a recent audit found the two programs have cost the state at least $1.6 billion since their inception, far exceeding original estimates for the program. Last year, the state put new guardrails in place to limit enrollment into the programs and reduce costs through co-pays and other measures.
Read more: Audit finds Illinois’ noncitizen health care programs far outstripped original cost estimates
Gov. JB Pritzker speaks before signing Illinois’ fiscal year 2026 budget on June 16. (Capitol News Illinois photo by Andrew Adams)
HBIA’s elimination also comes as Congress debates a domestic policy plan that could reduce reimbursements to states that provide health care benefits to noncitizens.
In anticipation of broader reductions to health care and Medicaid reimbursements to the state, Illinois lawmakers also increased spending on other health care and social service programs:
$40 million for Federally Qualified Health Centers. These centers could provide care for people who lose coverage under HBIA turn.
$18 million from the General Revenue Fund for five safety-net hospitals in the state’s Medicaid managed care program. Another $100 million from Fund for Illinois’ Future will go to support the Medicaid managed care program at 12 other safety net hospitals.
$60 million for administrative expenses for the Supplemental Nutrition Assistance Program. That’s a $20 million increase from FY25 as Congress has proposed requiring states to cover half of administrative costs.
$263.7 million for HOME Illinois, a program created to reduce homelessness in Illinois. Housing advocates calculated that between Home Illinois and other housing line items, the budget includes $354 million in funding. That’s about a $14.6 million decrease from a year ago, which marks about double of what Pritzker proposed cutting in homelessness funding in February.
An 80-cent hourly wage increase for direct service professionals who service individuals with intellectual and developmental disabilities in community care settings. However, overall flat funding for the program means 305 positions in the program will be eliminated, according to the They Deserve More coalition. Community Care Program workers at the Illinois Department on Aging will receive a 75-cent hourly wage increase.
A new $25 million Prescription Drug Affordability Fund to support certain pharmacies in Illinois in competition against larger pharmacy benefit managers.
$15 million for the Medical Debt Relief Pilot Program that purchases medical debt from patients at a fraction of the total debt.
A $4 million increase for the Department of Children and Family Services aimed at hiring 100 additional staff members.
A child tax credit created in 2024 at 20% of the Earned Income Tax Credit will double to 40%.
Education
The state’s evidence-based funding model for K-12 schools calls for $350 million in additional funding each year, with a portion of that going to a property tax relief fund and the rest directly to schools. The proposed budget fully funds the K-12 education increase at $307 million but does not add $43 million in property tax relief funds.
Funding for higher education operational expenses is only going up 1%. Pritzker had proposed 3%. Democrat budget leaders have said the spending plan includes ways to increase funding by an additional 2% if there are significant cuts in federal funding for higher education, however.
Read more: Despite victories, major higher education policy bills stall in General Assembly
The budget also includes:
A $10 million increase to the Monetary Award Program grants for lower-income college students.
$8 million for a minority teacher scholarship program.
$2.9 million for the state’s Common App initiative to make it easier for high school students to apply to Illinois colleges and universities at one time.
$212 million for Pritzker’s Smart Start early childhood education program.
$21.7 million for the newly created Department of Early Childhood
Others spending areas
Part of the budget package created a new Tier 2 reserve fund that can be accessed if there are violations of what’s known as the federal “safe harbor” law. Lawmakers appropriated $75 million for the fund this year, in line with Pritzker’s proposal. Broader reform to Tier 2 was not considered this spring.
“With this fix going into effect, we’re protecting our taxpayers and state workers from future shortfalls that could cost the state much more,” Pritzker said.
Read more: ‘This issue isn’t going away’: Illinois lawmakers delay pension reform again
Lt. Gov. Juliana Statton, who is also running for U.S. Senate, speaks at a June 16 signing ceremony where Gov. JB Pritzker formally approved the state’s fiscal year 2026 budget. (Capitol News Illinois photo by Andrew Adams)
Attorney General Kwame Raoul is receiving a $15.7 million general fund increase as his office engages in a growing number of lawsuits against the Trump administration. Raoul told lawmakers he needs more attorneys to handle the cases and a generally growing workload in his office. However, because of declining revenue in other funds, total funding for the office largely remains flat in FY26.
Read more: Raoul’s office to receive $15.7M budget increase for operations
The budget sent to Pritzker included a 5% pay raise for state lawmakers, to $98,304. State law sets the pay for legislators to increase annually with inflation, and lawmakers took no action to stop it from occurring in FY26.
The budget also includes:
$500 million for the Department of Central Management Services and Department of Commerce and Economic Opportunity for the Surplus to Success program to prepare idle state properties for economic development.
$17.9 million for the Department of Financial and Professional Regulation to implement a new licensing system
$40 million for immigrant Welcoming Centers
$6.2 billion for Department of Transportation construction projects, including $4.5 billion for roads and bridges.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
The post Pritzker signs $55.1B state budget reliant on $700M of new taxes appeared first on Capitol News Illinois.