Illinois is facing a $3 billion deficit next year, according to a report released by the Governor’s Office of Management and Budget (GOMB).

According to GOMB’s annual Economic and Fiscal Policy Report, Illinois faces a $3 billion fiscal year 2026 (FY26) deficit based on current spending patterns and revenue collection. That deficit is projected to climb to $4.1 billion in FY27, $5 billion in FY28, and $5.2 billion in FY29, before receding somewhat to $5 billion in FY30.

The report projects a $262 million budget surplus for the current year (FY25).

The projected deficits are despite the tax increases passed into law during the spring legislative session, which were projected to increase Illinois tax revenues by approximately $800 million annually.

Despite the General Assembly’s recently enacted tax increases, these projected deficits represent significantly higher budget shortfalls than GOMB projected last year.