Many Changes Are Coming to Illinois.
Illinois lawmakers have approved a $55.2 billion budget for the upcoming fiscal year. To generate additional revenue, the budget will introduce new taxes on tobacco products and sports betting, marking the state's seventh consecutive balanced budget.
A new sports betting tax will be implemented on online wagers. Operators will be taxed 25 cents per wager for the first 20 million bets in the fiscal year, and 50 cents for each subsequent wager.
All tobacco products, including vapes and e-cigarettes, will now be taxed at a raised rate of 45%.
Businesses are also affected by tax changes. Companies conducting over $100,000 in business within Illinois must assess sales taxes, even if they do not have a physical presence in the state.
The legislature failed to pass a transit reform bill to address the $771 million budget deficit.
"We need transit reform. We need to make sure we're addressing the needs of commuters not just in the city of Chicago or Cook County or in the collar counties, but all across the state," said Governor Pritzker.
There will also be a cut in immigrant health care. A state-funded health insurance program that serves more than 30,000 noncitizens between the ages of 42 and 64 will be eliminated. However, the state will continue to fund a program for seniors.
"We had to make some tough decisions here," Gabel said. "That program grew at greater rates, financially, than we thought it would, and we had to make some hard decisions."
Illinois has approved the allocation of $307 million in new funding for K-12 education. The funding model aims to distribute resources equitably across districts, prioritizing those furthest from adequate funding.
Funding for higher education is more limited. State universities will receive a 1% increase, while community colleges face reductions.
The Chicago Bears' request for state funding to help construct a new stadium was left unaddressed. Pension reform was also not discussed.