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November 4, 2024
News
Illinois Government Report Projects $3 Billion State Deficit for FY26
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.
| Fiscal Year (FY) | Last Year’s Projection | This Year’s Projection |
|---|---|---|
|
Fiscal Year (FY)
FY25
|
Last Year’s Projection
-$721 Million
|
This Year’s Projection
+$262 Million
|
|
Fiscal Year (FY)
FY26
|
Last Year’s Projection
-$1.317 Billion
|
This Year’s Projection
-$2.987 Billion
|
|
Fiscal Year (FY)
FY27
|
Last Year’s Projection
-$1.540 Billion
|
This Year’s Projection
-$4.121 Billion
|
|
Fiscal Year (FY)
FY28
|
Last Year’s Projection
-$1.389 Billion
|
This Year’s Projection
-$4.955 Billion
|
|
Fiscal Year (FY)
FY29
|
Last Year’s Projection
-$876 Million
|
This Year’s Projection
-$5.163 Billion
|
|
Fiscal Year (FY)
FY30
|
Last Year’s Projection
NA
|
This Year’s Projection
-$5.017 Billion
|
GOMB is projecting an increase in state spending of $3 billion in FY26, roughly equal to the projected deficit. According to GOMB, total annual spending is on track to rise to $63 billion in FY30. The state currently has put aside $2.2 billion in its rainy-day fund (Budget Stabilization Fund).
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