Pritzker vows to veto budget with broad tax hikes as lawmakers try to close $300M gap

SPRINGFIELD, IL (Chambana Today) – With the July 1 deadline looming, Governor J.B. Pritzker on Wednesday drew a firm line in Illinois’ tense budget negotiations, declaring he will veto any spending plan that includes broad tax hikes on individuals, corporations, or sales.

“Anything that’s broad-based and would have a negative impact on working families, I would veto a budget like that,” Pritzker told reporters, specifically rejecting proposals such as a sales tax on services or increases to the state’s top revenue sources.

His comments come as Democratic lawmakers face a $300 million revenue shortfall in the proposed $55.2 billion fiscal year 2026 budget, which has now been revised downward to $54.9 billion in expected revenue. While personal income tax collections remain strong, corporate income tax is down 8%, and sales tax revenue is stagnant.

Though the governor opposes sweeping hikes, he has backed about $900 million in targeted tax changes, including new levies on businesses and sportsbooks, and a proposed $100 million increase on electronic gambling and casino table games.

Still unclear is how lawmakers will fund Chicago-area public transportation agencies, which face a growing budget gap. Pritzker said he has not reviewed potential revenue sources for that issue and is not pushing for specific solutions.

Behind closed doors, Democrats have discussed targeted tax increases but have been cautioned to temper expectations.

“No one’s going to get everything they want,” said House Speaker Chris Welch, D-Hillside, adding that the budget must be balanced.

Meanwhile, Republicans have pledged to oppose any tax hikes. “The legislature has a great track record of squandering time and enacting massive changes at the last minute,” said Rep. Ryan Spain, R-Peoria.

Business groups are also sounding alarms, particularly over the potential of a digital advertising tax—a proposal that has yet to be filed as legislation but is under consideration. Sixteen business organizations signed a letter urging lawmakers to reject the idea, warning that it would hurt small businesses and likely face legal challenges under the U.S. Constitution’s Commerce Clause.

Lawmakers must finalize the fiscal year 2026 budget before the new fiscal year begins on July 1.