Inside Illinois’ efforts to court the emerging quantum technology industry

Inside Illinois’ efforts to court the emerging quantum technology industry

Capitol News Illinois

CHICAGO — Just over one year ago, the Illinois legislature approved spending more than $700 million to attract and support a new industry: quantum technology.
Now, representatives of other countries, federal research labs and a network of private organizations with ties to the state are beginning to ink deals and make agreements to bring specific quantum companies to Illinois — and boost the startups that are already here.
Illinois state officials are interested in attracting the nascent industry because of its potential for economic growth and positioning Illinois as a high-tech leader in the coming decades.
Quantum technology is an emerging field of research and business that creates specialized machinery and computers that use the laws of quantum mechanics to solve problems and behave in ways that would be out of reach for traditional machines.
Last week, two events in Chicagoland offered a glimpse inside the world of quantum businesses and the layers of public and private funding going into the industry.
The Japan External Trade Organization — an economic development organization affiliated with the government of Japan — sponsored a two-day “delegation” of business representatives to Chicago.
At an early meeting of the delegation, representatives of the state and economic development agencies pitched the region — and Illinois’ state backing — as unique in the world.
“This is not a state government that is following trends but really setting the trends,” Intersect Illinois Chief Quantum Officer Preeti Chalsani told the delegation. “When I go to conferences, I hear about other states and countries who are thinking of doing something like Illinois. That really makes me proud.”
Intersect Illinois is a private nonprofit organization with ties to the state. It’s led by Christy George, a former Pritzker administration official who helped plan the Democratic National Convention in Chicago last summer. The organization also plays a prominent role in the state Department of Commerce and Economic Opportunity’s five-year plan for attracting business to Illinois.
“This is a state that is constantly on a mission to constantly build and expand our business environment,” George said at the event.

What is quantum tech?
Researchers and entrepreneurs are developing computers and other systems using the principles of quantum mechanics to achieve things that would be impossible with traditional computers. Current quantum computers can perform benchmark tests more than 1 billion times faster than traditional computers. Quantum technology can also be used to decode encrypted messages, posing serious questions for the cybersecurity industry. Other applications include simulations, sensor technology and communications.
World Business Chicago, an economic development organization backed by the city of Chicago, estimates the industry could generate tens of billions of dollars in Chicagoland and create more than 100,000 jobs.

Representatives of the Department of Commerce and Economic Opportunity, World Business Chicago and the University of Chicago also participated in the event.
The visit mirrored Gov. JB Pritzker’s and Chicago Mayor Brandon Johnson’s visits to Japan where both men, along with sizable entourages of economic development leaders and businesspeople, met with Japanese officials.
Read more: Federal agency opposes new state law; Pritzker to lead trade mission to Japan
Both visits, and especially Pritzker’s in October 2024, built hype in the Asian nation about Illinois’ role in the developing quantum technology sector. Pritzker is a self-professed “quantum geek” and his personal interest in the emerging industry contributes to the state’s interest in it.
Over the two days the Japanese delegation was in Chicago, they toured several local quantum businesses, including qBraid, InfleQtion, and EeroQ among other locations around the city. The DCEO and Intersect Illinois also hosted a reception for the Japanese delegation.
The efforts from state and industry boosters appear to be interesting to at least a few in the cutting-edge industry.
At a pitch and networking event capping off the Japanese visit last week, several Chicago-based and Japan-based companies discussed their business models and strategies.
One of the Japanese delegation members who pitched at the event, Quantumdata founder Yuki Nagasako, told Capitol News Illinois the quantum industry in Chicago is “very hot,” especially compared to artificial intelligence tech hubs in California.
“When I say I work in quantum technology in the Bay area? Nobody knows. Nothing,” Nagasako said. “But in Chicago, here? Everybody.”
Nagasako, whose company has offices in California and is currently in a fundraising round, said he’s seriously considering expanding in Chicago.
That event also featured a closed-door meetings between Japanese companies and officials at PsiQuantum as well as other local companies.
State quantum park
PsiQuantum is one of the jewels of the state’s quantum crown. It is the “anchor tenant” of the Illinois Quantum and Microelectronics Park, or IQMP, a research park set to break ground later this year on Chicago’s South Side.
The California-based quantum computing company was raising $750 million at a $6 billion valuation earlier this year, according to reporting from Reuters. Its last official valuation was $3.1 billion in 2021.
Read more: Quantum business park coming to Chicago, backed by $700M from state of Illinois
That park is being built with $500 million in state funding, on top of $200 million in tax breaks and other incentives going to PsiQuantum directly.
Harley Johnson, the University of Illinois professor who took over as the head of the IQMP late last year, said the “singular focus” of the research facility is to help scale up quantum computing technology.
“In some cases, it takes really specialized, industrial-scale infrastructure,” Johnson said last week.
Johnson was speaking at an event at Argonne National Lab where federal researchers and state-level quantum advocates discussed the state’s future as the “Quantum Prairie” — a riff on California’s Silicon Valley.
There, he also laid the groundwork for what is expected to be a busy few months at the state’s quantum research park.
“There are a lot of exciting announcements,” Johnson said. “We’re going to break ground very soon.”
In addition to PsiQuantum, several other major groups have said they’ll set up shop at the research park. Six months ago, IBM announced it would build a quantum computer and research center at the park. About a year ago, the Defense Advanced Research Projects Agency, or DARPA, announced it would base a quantum testing program at the park.
Two weeks ago, the IQMP also announced that Australian tech and quantum company Diraq intends to open a facility at the park.
“Diraq building and scaling their quantum operation at the IQMP is a testament to Illinois attracting the tech and security sectors,” Pritzker said in a statement at the time. “Diraq’s commitment further cements Illinois’ position as a global quantum leader and reflects the state’s commitment to fostering innovation and economic growth.”
Diraq is one of nearly 20 companies that is participating in the first stage of DARPA’s quantum testing program.
“We’ve got others that will be coming on board soon,” Johnson said in his speech last week.

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 Inside Illinois’ efforts to court the emerging quantum technology industry appeared first on Capitol News Illinois.

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Pritzker signs $55.1B state budget reliant on $700M of new taxes

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.

[caption id="attachment_71185" align="aligncenter" width="1140"] House Speaker Emanuel “Chris” Welch, D-Hillside, discusses the state budget at a June 16 signing ceremony. (Capitol News Illinois photo by Andrew Adams)[/caption]

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.

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New taxes on sports bets, nicotine products as Democrats pass $55.2B budget

New taxes on sports bets, nicotine products as Democrats pass $55.2B budget

Capitol News Illinois

SPRINGFIELD – Giving almost no time for public review, Illinois Democrats pushed through a $55.2 billion budget for next fiscal year late Saturday, bolstering coffers with new taxes on sports bets, nicotine products and businesses.
The $55.2 billion spending plan is supported by $55.3 billion of revenue, including just over $1 billion in new taxes and revenue changes.
The four bills making up the budget and capital spending plan, were part of a flurry of thousands of pages of legislation that went from introduction to passage in the final 48 hours of the legislative session.
The budget marked a roughly 3.9% spending increase from the current year, while Republicans criticized it for containing few cuts. It raises about $500 million more in new revenue than what Gov. JB Pritzker proposed in February to make up for declining base revenues.
The minority party also aired frustration with supermajority Democrats for providing next to no time for public review of the massive spending plan and other major bills.
“We’re rushing this process like we always do. ‘Let’s hide this stuff. Let’s hide it so that the public doesn’t see it until it’s too late,’” Rep. John Cabello, R-Machesney Park, said.

[caption id="attachment_69364" align="aligncenter" width="1140"] State Rep. John Cabello, R-Machesney Park, points out infrastructure projects that he describes a “pork” in the state budget on Saturday, May 31. (Capitol News Illinois photo by Jerry Nowicki)[/caption]

Democrats said it was the best budget they could manage in a difficult year. To address potential uncertainties stemming from federal policy changes, they gave the governor authority over a new $100 million “emergency” fund. And they frequently lobbed criticisms at President Donald Trump and Republicans in Congress.
“I am very pleased to be able to present a balanced budget crafted to be fiscally and socially responsible, because we see the decisions made in Washington right now are neither,” House Majority Leader Robyn Gabel, D-Evanston said. “Erratic leadership in Washington has affected our economic outlook, our revenue projections, and even threatened federal funding for our most crucial services.”

[caption id="attachment_69366" align="aligncenter" width="1140"] House Majority Leader Robyn Gabel, D-Evanston, presents her budget bill to the Illinois House on Saturday, May 31. (Capitol News Illinois photo by Jerry Nowicki)[/caption]

The GOP also took issue with the tax increases, although the measure did not raise or create new sales, income or service taxes.
Instead, the measures expand state taxes on foreign and out-of-state income for businesses, raise tax rates on tobacco, vapes and sports gambling, and sweep fund balances from several lesser-known and utilized state funds.
The spending measure, Senate Bill 2510, passed the House 75-41 just before 10 p.m. The Senate followed around 11:30 p.m. with a 34-23 vote. The revenue and tax changes, House Bill 2755, and the budget implementation bill, House Bill 1075, both passed with relative ease before the constitution’s midnight deadline and only Democratic votes as well. Gov. JB Pritzker issued a statement saying he would sign it.
Another spate of tax increases included in a transit governance overhaul bill surfaced late but sputtered. The failed measure would have added a $1.50 fee on food and package deliveries and taxed electric vehicle charging statewide among other changes. Talks on that bill could resume later this year.
New taxes on vaping, gaming, deliveries
The revenue bill creates a tax of 25 cents per wager for a sports betting licensee’s first 20,000 wagers accepted, and 50 cents per wager after that.
Consumers will also see new taxes on tobacco products. The tax rate will rise to 45% from 36%. Vape products and nicotine pouches would also now be included under the tax.
The revenue plan amends state law to tax sales from all businesses that transact in the state, rather than only businesses with a physical presence in Illinois. The plan also eliminates a “safe harbor” exemption for businesses that move money outside the state.
Businesses that move profits to other countries would also be subject to the state’s corporate income tax. The federal government currently taxes half of income moved offshore and Illinois would tax the other half under the revenue plan.
Businesses outside Illinois that sell $100,000 or more to people in the state must also collect Illinois sales taxes even if the business doesn’t have a physical location in Illinois. This would apply to businesses like Amazon.
“I will not support this betrayal of hard-working Illinoisans,” Sen. Don DeWitte, R-St. Charles, said. “And if you care about the people who sent you here, if you truly represent them, you’ll vote no too. Enough is enough. It’s time for this body to stand with taxpayers, not stand up against them.”
Another source of new revenue is a delinquent tax payment incentive program designed to help the state recuperate overdue tax payments. It will generate $228 million, Rep. Will Guzzardi, D-Chicago, said.

[caption id="attachment_69376" align="aligncenter" width="1140"] State Rep. Will Guzzardi, D-Chicago[/caption]

The state would also pause the final transfer of motor fuel sales tax revenue to the road fund in order to free up $171 million, according to the governor’s office’s estimate.
A separate bill designed to lower prescription drug prices calls for levying a fee on pharmacy benefit managers based on the number of patients they insure. Money from that fee would go into a fund for the Department of Commerce and Economic Opportunity to award up to $25 million a year in grants to independent pharmacies and pharmacies located in rural counties. The remaining money would go to the state’s general revenue fund.
The measure also extends the state’s Hotel Operators’ Occupation Tax to short-term rentals like Airbnb and Vrbo.
Immigrant health cuts
A controversial program that provides health insurance to more than 30,000 noncitizens between ages 42 and 64 will be cut in FY26. The program’s elimination saves the state $330 million, but a $110 million program for seniors will remain in place.
Together, the two programs have cost the state at least $1.6 billion, according to an audit released in February, far exceeding budgeted costs for the program.
“We had to make some tough decisions here. That program grew at greater rates, financially, than we thought it would, and we had to make some hard decisions,” Gabel said.
Federally Qualified Health Centers are set to receive $40 million in the budget. The centers provide health services to low-income and uninsured people. Democrats touted that increase to provide care for immigrants who would have qualified for the health care program.
Illinois still risks losing some Medicaid funding under a proposal in Congress that threatens to slash reimbursements for states that provide health insurance to people illegally in the United States. But Gabel noted it’s possible those reductions won’t take place until 2027.
The budget also increases funding for safety-net hospitals with federal Medicaid funding cuts possible.
Education spending
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 portion at $307 million but does not add $43 million in property tax relief funds, according to Democratic leaders.
Funding for the Illinois Community College Board would also decrease by $24 million, mostly because lawmakers reduced spending on a workforce development grant that Democrat leaders said was not being fully utilized.

[caption id="attachment_69368" align="aligncenter" width="1140"] State Sen. Elgie Sims, D-Chicago, introduces the budget bill in a committee hearing on Saturday, May 31. (Capitol News Illinois photo by Jerry Nowicki)[/caption]

Funding for state universities would only increase by 1%. Pritzker proposed a 3% increase for higher education even as most other areas of his budget would’ve increased by 1%. Senate Democrats’ budget leader Sen. Elgie Sims, D-Chicago, said the budget allows for an additional 2% increase in FY26 if the federal government eliminates substantial funding.
Pensions
Despite more than a year of discussions, Illinois lawmakers did not tackle pension reform this spring. Illinois’ Tier 2 pension system is likely out of compliance with Social Security’s “safe harbor” law that requires pension benefits to be at least equal to Social Security.
Part of the budget package created a new Tier 2 reserve fund that can be accessed if there are violations of the “safe harbor” law. Lawmakers appropriated $75 million for the fund this year, in line with Pritzker’s proposal.
‘Emergency’ fund, raises, more
Notably not in this year’s budget is an increase to the “rainy day” fund. Pritzker has taken pride in the fund’s increases in recent years, as it’s grown to a balance of $2.3 billion, up from less than $60,000 when Pritzker took office. The FY26 budget would suspend the monthly transfer for one year, freeing up $45 million for general fund use.
The budget package also establishes a new $100 million 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 other funds.
“That will allow us to respond to actions by the federal government and challenges that present themselves and costs that have been diverted from the federal government to the state government,” Sims said in a committee hearing.
The attorney general’s office would get $116 million from the general fund. Attorney General Kwame Raoul asked lawmakers to boost funding for his office as he engages in a growing number of lawsuits against the Trump administration. Raoul was hoping to receive $120 million in funding.
Direct service providers are in line for an 80-cent per hour wage increase, but Republicans said calling it a funding increase is “sleight of hand,” because the measure would also reduce work hours for DSPs by the hundreds of thousands. That makes the increase negligible, Sen. Chapin Rose, R-Mahomet, said in committee.

[caption id="attachment_69367" align="aligncenter" width="1140"] State Sen. Chapin Rose, R-Mahomet, criticizes Democrats for not including more funding for care providers for people with developmental disabilities in a committee hearing on Saturday, May 31. (Capitol News Illinois photo by Jerry Nowicki)[/caption]

“It’s not a great budget, but it is a good budget and it is the budget we need for this very difficult moment,” Rep. Lindsey LaPointe, D-Chicago, said.
Lawmakers will see their salaries rise as part of the budget, going to a $98,304 base salary from roughly $92,000. That’s an annualized rate of increase that is set by law.
“You raised our pay, you gave yourselves hundreds of millions of dollars of our taxpayers funds to spend on your pet projects,” Rep. Amy Elik, R-Godfrey, said. “So I simply don’t believe you anymore that you ever intended to be fiscally careful.”
No Bears stadium funding
Lawmakers did not appropriate funding for the Chicago Bears to build a new stadium. But NASCAR would be the recipient of a $5 million grant ahead of the sport’s third downtown Chicago race in July, and the PGA Tour would receive a $1 million grant as part of hosting the 2026 President’s Cup in DuPage County. Those were two economic development measures criticized by Republicans during the Senate committee hearing.
The budget also contains $200 million to prepare unused state properties to be repurposed for development, Sims said. Lawmakers removed another $300 million that Pritzker had sought in spending aimed at offloading surplus property.
Gabel said the state’s employee management department has negotiated more than $100 million in health care cost savings as well.
Any remaining federal pandemic relief funding would also be sent to recipients that have not received payments in previous years before the funding expires in 2026.

Jade Aubrey contributed.
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 New taxes on sports bets, nicotine products as Democrats pass $55.2B budget appeared first on Capitol News Illinois.

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Illinois state parks draw highest number of visitors in more than a decade

Illinois state parks draw highest number of visitors in more than a decade

Capitol News Illinois

SPRINGFIELD – Illinois state parks saw more visitors in 2024 than any point in the past 15 years, according to new data from the Illinois Department of Natural Resources.
Illinois’ 290 state parks and 56 historic sites recorded more than 41 million visitors last year, which was the most in 15 years, following several significant capital projects to upgrade and improve many of the parks.
Interest in state parks has been growing since the pandemic, IDNR Director Natalie Phelps Finnie said in an interview.
“During COVID, people were stir crazy, shut in, and they once again realized how important nature is to all of us,” Phelps Finnie said.
An aggressive advertising campaign by the state has also helped, she said. The Illinois Department of Commerce and Economic Opportunity launched the state’s “Middle of Everything” marketing campaign in 2022, which promotes tourism at the state’s top recreation and cultural attractions in TV commercials, billboards and online advertising.
Starved Rock State Park in LaSalle County topped the list in 2024 with 2.4 million visitors coming to explore the canyons and waterfalls nestled in gorges along the Illinois River in north-central Illinois.
Read more: State completes project preserving its only undeveloped Lake Michigan shoreline
The second-most visited park last year was Illinois Beach State Park, near Zion, with 2 million visitors. IDNR completed a major $73 million project last year to preserve the park from erosion.
“It’s always been a high number of visitors, but certainly the uptick we’ve seen since the beach was restored and since the resort is being invested in once again and remodeled,” Phelps Finnie said.

[caption id="attachment_65944" align="aligncenter" width="1140"] Two people fish on a beach at Illinois Beach State Park near one of 22 breakwaters which protect the shoreline from erosion. (Capitol News Illinois photo by Andrew Adams)[/caption]

Beach State Park holds Illinois’ only undeveloped stretch of Lake Michigan shoreline, but it’s subject to the ferocious waves of the lake. The conditions have sometimes eroded up to 100 feet of shoreline a year in parts of the park.
To preserve the park’s shoreline, IDNR’s project included building 22 breakwater structures in the lake to decrease the power of the waves hitting the shore. Several of the structures are entirely submerged while others that poke out the surface of the lake are designed to provide nesting for migratory birds.
The project also included extending the public beach further into Lake Michigan. Erosion had diminished the beach to come within feet of the parking lot and hotel at the park.
The state also announced earlier this year it will put $60 million toward deferred maintenance projects. More than half of that will go to Starved Rock for trail improvements, facility renovations and building a new wastewater system.
The department is also working on adding electric vehicle chargers at state parks and renovating the Old State Capitol in Springfield.
This summer, IDNR plans to restore and upgrade the Crenshaw House in Gallatin County to include a visitor center at a location on the reverse underground railroad, where slaves were held. According to IDNR, John Crenshaw used slaves at his southern Illinois home where he manufactured salt. Crenshaw is also believed to have kidnapped freed or escaped slaves to sell them back to slavery in the South.
“We’re excited that the investment is being made and these parks are getting the attention they deserve,” Phelps Finnie said.
Read more: Illinois commits $8M to repair deteriorating site where Lincoln launched political career
Lincoln’s New Salem Historic Site in Peterburg, where the 16th president lived in his 20s, was the state’s most visited historic site last year with 360,000 visitors. The site is in line for funding to repair aging buildings.
IDNR announced in March it will invest $8 million to repair up to 23 replica log buildings at the site that depict how the village looked when Lincoln lived there in the 1830s.
“You have things fall into disrepair and then it dominoes,” Phelps Finnie said. “It builds. So what was once maybe $100 million or so is now a little over $1 billion worth of deferred maintenance” across IDNR’s properties.

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.
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