Illinois collected $3.883B in General Funds revenue in August of FY 2027, an increase of 9.2% (or $326M) over August of FY 2026. The year-over-year increase was driven primarily by a surge in personal income tax collections (up 10.4% or $195M), continued strength in sales tax (up 9.0% or $91M), and a notable jump in federal sources (up 30.9% or $115M). Corporate Income Tax posted a modest gain of 8.3% (or $6M) in what is historically one of the lightest months for this revenue source, while All Other State Sources rose by a combined 34.7% (or $100M), largely due to a timing-related rebound in interest on state funds and investments. Transfers In declined by 45.8% (or $147M), driven by the absence of the Income Tax Refund Fund transfer that brought in $150M last August. Illinois’ FY 2027 budget estimates $55.946B in revenue, a 0.6% decline from the final FY 2026 revenue figure of $56.295B, reflecting anticipated declines in Personal Income Tax revenues tied to the Department of Revenue’s true-up reconciliation process as well as reduced transfers into General Funds.
Two months into FY 2027, General Funds revenues are up 7.0% (or $515M) compared with the same period in FY 2026. Each of the “big three” revenue sources has contributed to this strong start, with additional notable growth from Federal Sources. Personal Income Tax revenue is up 5.0% (or $196M), Sales Tax revenue is up 11.0% (or $223M), and Corporate Income Tax revenue is up 50.7% (or $138M). Sales Tax has been the largest contributor to the cumulative FY 2027 revenue growth, supported by strength in certain taxable categories, particularly motor fuel and motor vehicle sales. Federal Sources are also up a combined 25.4% (or $172M), though the historical volatility of this revenue category means that this strong year-to-date growth may not persist in the months ahead. Growth from these revenue sources has more than offset year-over-year declines from a few smaller revenue sources.
Through August, all other state sources are down a combined 0.6%, weighed down by an $18M decline in Estate Tax receipts and a $5M drop in other sources. These declines have been partially offset by modest year-to-date gains in Public Utility Taxes ($11M) and Insurance Taxes ($6M), while interest in State Funds and Investments swung sharply between July and August but is essentially flat on a year-to-date basis. Transfers In are down a combined 29.2% (or $147M), driven by a steep drop in the Income Tax Refund Fund transfer, which brought in $150M last August but nothing this August and is projected at only around $50M for all of FY 2027, down from $700M in FY 2026. Helping to offset these declines are year-to-date increases in Gaming Transfers ($19M), Sports Wagering Transfers ($17M), and Cannabis Transfers ($4M). With year-to-date revenues outpacing FY 2026 and the FY 2027 budgeted level, Illinois will have a slight buffer to make up for any potential weaker revenue performance later in the year.
Important Upcoming Dates – Statewide
November 3– Illinois General Election
November 17-19– Veto Session Week 1
December 1-3– Veto Session Week 2
In the News
After years of delay, funding to restart Chicago-Quad Cities rail service has Illinois back on track–Chicago Tribune, September 11, 2026
Illinois has finally assembled enough money to restart passenger rail service between Chicago and the Quad Cities, ending a nearly two-decade effort and clearing the last major hurdle for a project that should strengthen the region’s rail ties to downtown.
Illinois ethics panel accepts resignation and moves to quickly name acting legislative watchdog–Chicago Tribune, September 10, 2026
The state’s Legislative Ethics Commission agreed Thursday to a Sept. 30 retirement date for Michael McCuskey as the legislature’s top ethics watchdog and said it plans to move quickly to appoint an acting legislative inspector general who could end up serving the nearly two years remaining in McCuskey’s term.
Advocates sue over Illinois court transparency–Chicago Reader, September 10, 2026
The Better Government Association and DuPage County–based nonprofit Radical Hospitality Ministries are suing the Illinois state judiciary for failing to comply with a legal obligation to collect and publish data about people awaiting trial.
Years after promising accommodations, Illinois prisons still leave people waiting–Chicago Reader, September 10, 2026
People in Illinois prisons can identify what they need, request accommodations, and still wait months or years to receive them—if they receive them at all.
Gov. Pritzker, candidate Bailey take competing messages to Dallas GOP midterm convention–ABC7, September 9, 2026
The race for Illinois governor shifted south on Wednesday as both Republican challenger Darren Bailey and Democratic Gov. JB Pritzker appeared in Texas ahead of the midterm Republican convention set to begin in Dallas.
House GOP again calls for ethics reforms after legislative watchdog resigns–The Center Square, September 9, 2026
Following confirmation that the state’s top ethics watchdog overseeing lawmakers in Springfield filed to resign, GOP state lawmakers in the House are again calling for strong reforms to legislative ethics standards and rules.
These 61 organizations will receive $3.5M in Illinois local food grants–Capitol News Illinois, September 9, 2026
Illinois will spend over $3.5 million to local food organizations in the state’s latest attempt to bolster local food infrastructure. The grants from the Department of Agriculture are part of a three-year-old program aimed at making it easier for local farmers to process and distribute food locally. In total, 61 organizations received grants, 16 of them in Cook County and the other 45 distributed among 34 other counties.
Independent governor candidate Collin Corbett aims to give voters ‘a home again’ in polarized Illinois–Chicago Sun-Times, September 9, 2026
A fiscal conservative who supports abortion rights and opposes much of the Trump agenda, Corbett says there’s a middle ground in the rematch between Democratic Gov. JB Pritzker and Republican challenger Darren Bailey.
‘Ready for the Fight’: Why JB Pritzker is taking his slogan national with PAC targeting MAGA–Capitol News Illinois, September 8, 2026
The Pritzker-funded PAC plans to spend in districts won by President Donald Trump in 2024.
Legislative watchdog Mike McCuskey resigning in wake of complaints over handling of Benton harassment case–Chicago Sun-Times, September 8, 2026
The state’s legislative inspector general will step down at the end of the month, after a complainant raised concerns about “inaccuracies” in his report on sexual harassment allegations against ex-state Rep. Harry Benton.
Labor Day kicks off Illinois’ fall campaign season with distractions becoming a leading theme–Chicago Tribune, September 7, 2026
Labor Day marks the unofficial yet traditional launch of the fall general election campaign, and for the major candidates it also means a shift in focus from downstate fairs, tours and rallies to the vote-rich Chicago area, where statewide races are typically decided.
As he prepares to run for mayor, Alexi Giannoulias hoping to keep the Bears in Chicago–CBS News, September 10, 2026
Five months until the 2027 mayoral election in Chicago, Illinois Secretary of State Alexi Giannoulias is leading in early polling, and has a commanding lead in fundraising.
Mayor Johnson touts summer violence reduction as Chicago reports fewer homicides–ABC7, September 9, 2026
Mayor Brandon Johnson said Wednesday that Chicago saw a significant reduction in violent crime during the summer of 2026, calling the decline in summer violent crime historic during his fourth summer in office.
Key City Council Panel Agrees to Tighten Chicago’s Ethics Law After ‘Problematic Incidents’–WTTW, September 9, 2026
A key Chicago City Council committee agreed on Tuesday to tighten Chicago’s Governmental Ethics Ordinance, advancing a slate of changes that includes a requirement that candidates explicitly stand by their advertisements.
City Officials Promise Safe Mexican Independence Day Celebrations This Weekend, 1 Year After Midway Blitz–Block Club Chicago, September 8, 2026
Leaders took a stand against federal immigration enforcement on Tuesday, pledging a safe and fun weekend full of Mexican Independence Day activities.
With Ald. Rodriguez not seeking re-election, Johnson loses key City Council ally–Chicago Sun-Times, September 9, 2026
Ald. Mike Rodriguez (22nd), the Workforce Development Committee chair who helped Mayor Brandon Johnson deliver two of the proudest accomplishments on his progressive to-do list, won’t be on the ballot next year.
Chicago Named The Most ‘Climate Resilient’ City On Earth–Block Club Chicago, September 9, 2026
Chicago’s low physical exposure to coastal climate disasters like hurricanes and adaptation to weather risks contributed to its high rank. This doesn’t mean things will be good here, one expert said — they’ll just be “less bad” than other places.
Residents and elected leaders protest proposal to move the Chicago White Sox–Chicago Tribune, September 8, 2026
Hundreds of residents from Bridgeport, Chinatown and Armour Square gathered at Rate Field Tuesday morning to protest plans by Amtrak and billionaire Justin Ishbia to establish a giant railroad maintenance facility nearby and possibly move the White Sox out of the team’s longtime home on the South Side.
Chicago Mayor Johnson seeks to turn a new page in progressive politics–CBS News, September 6, 2026
The Chicago mayoral election is less than six months away, with over a dozen candidates in the race. The real question on everyone’s mind is: will Mayor Brandon Johnson run for reelection?
New Sox Park? Future owner Justin Ishbia announces proposal for riverside stadium at ‘The Railyards’–Chicago Sun-Times, September 5, 2026
The stadium would sit alongside the Chicago River stretching from Roosevelt Road in the north to 18th Street in the south, and bordered with the river on its east side and Canal Street to its west. The company has the land under contract.
Uber is cutting more than 350 jobs in Chicago–Crain’s Chicago Business, September 4, 2026
Uber Technologies plans to lay off 363 employees in Chicago later this year as part of a major restructuring at the rideshare and food-delivery service. The Chicago cutbacks amount to 11% of the 3,300 job cuts announced earlier this week by CEO Dara Khosrowshahi in an effort to slash bureaucracy and costs at the company.