Prairie State Wire

The Illinois General Assembly has approved a budget of $55.2 billion, marking an increase of approximately 3.9% compared to the previous year. This rise in the budget will be funded through various tax increases targeting tobacco products, large and out-of-state businesses, short-term lodging rentals, sports betting, cell phone plans, among other revenue sources.

These tax hikes are projected to generate around $1.1 billion in new revenue for the state. Additionally, the budget includes several one-time fund sweeps and diversions aimed at supporting increased spending.

A proposal for a statewide $1.50 retail delivery fee intended to boost funding for Chicago area transit systems passed the Senate but was not addressed by the House. Despite this hurdle, lawmakers from the Chicago area remain committed to pursuing additional state taxes to enhance public transportation funding. Discussions are ongoing about revisiting this issue later in the summer or fall to potentially pass either the retail delivery fee or another form of taxation or fee.