End of FY 2026 Revenue Update
Illinois closed Fiscal Year 2026 with total General Funds revenue of $56.300B, up 4.3% (or $2.302B) over FY 2025, marking the highest revenue total in state history for the second consecutive year. From a base revenue perspective, which factors out one-time revenues, the state finished FY 2026 at $56.297B, up 4.4% (or $2.364B) over FY 2025’s base total. A strong final month to the fiscal year bolstered year-over-year growth, with June revenue alone rising by 8.2% (or $432M) over June 2025, aided by an extra receipting day, with more than $300M arriving on the final receipting day of the year alone, a surge that may pull forward revenue otherwise due in early FY 2027.
Personal income tax was the largest dollar contributor to year-over-year General Funds growth, up 4.2% (or $1.402B) over FY 2025, largely due to sustained wage growth as well as gains from the Department of Revenue’s true-up reallocation process, which benefits personal income tax at the expense of corporate income tax and the non-General Funds personal property replacement tax. Despite a strong month in June, corporate income tax finished down 3.9% (or $250M) from FY 2025, largely reflecting changes from the federal One Big Beautiful Bill Act and the inverse impact of the true-up reallocation. Sales tax revenue grew 2.5% (or $533M) over FY 2025. After performing well through much of the fiscal year due to sustained inflation since the COVID-19 pandemic, sales tax revenues got a boost in the final quarter, likely reflecting higher motor fuel prices and other additional inflationary pressures resulting from the Iran war.
All other state revenue sources finished up a combined 8.1% (or $344M), led by a 44.4% (or $268M) surge in estate tax revenue. Transfers into General Funds also posted strong growth, up 24.3% (or $611M), led by a 176.7% (or $447M) increase in the Income Tax Refund Fund (ITRF) transfer and 90.1% (or $183M) growth in sports wagering transfers following the new per-wager tax. After adjustments in the FY 2026 and FY 2027 budget to the percentage of income tax collections reserved for the ITRF, the ITRF transfer is expected to decline relative to FY 2026 in the new fiscal year. Despite underperforming FY 2025 for much of the fiscal year, a strong close to the year brought federal revenues to a 3.8% (or $143M) year-over-year growth level. Even so, year-end federal revenues of $3.858B finished well below the FY 2026 enacted budget’s $4.2B estimated level.
At the time of passage, the FY 2026 budget assumed revenues of $55.297B. The Commission of Government Forecasting and Accountability (COGFA) then raised its estimate to $55.983B in March 2026 before slightly reducing it to $55.908B in May. The Governor’s Office of Management and Budget (GOMB), which has tended to project more conservatively than COGFA under Gov. JB Pritzker, increased their estimate above the enacted budget level in May to $55.673B. In the end, final FY 2026 revenues exceeded the enacted budget by 1.8% (or $1.003B), COGFA’s May estimate by 0.7% (or $392M), and GOMB’s May estimate by 1.1% (or $627M). Much of this outperformance was driven by growth above expectation from personal income tax, estate tax, and transfers into General Funds.
The enacted FY 2027 budget estimates revenues of $55.946B, slightly below the FY 2026 final figure. Major reasons why FY 2027 revenues are not expected to match their total from FY 2026 are a smaller true-up reallocation, which hurts personal income tax totals; a lower expected transfer from the ITRF; and lower projected estate tax collections.
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
Pritzker signs bill codifying discount utility rate program for low-income households–The Daily Line, July 10, 2026
Gov. JB Pritzker signed a bill Thursday codifying electric rate discounts for low-income households.
State Rep. Carol Ammons indicted on federal wire fraud, obstruction charges–The Daily Line, July 9, 2026
Rep. Carol Ammons (D-Urbana) was indicted Tuesday by a federal grand jury on wire fraud and obstruction charges. Her husband, Champaign County Clerk Aaron Ammons, was also indicted for the same alleged scheme on two obstruction-related charges.
Illinois sues Trump administration over rules limiting federal funds for permanent housing projects–The Daily Line, July 9, 2026
Illinois again joined a coalition of states in suing the Trump administration over an attempt to cap funding for permanent housing projects that the states argue is unlawful.
As Illinois enters 10th year under Evidence-Based Funding model, equity remains an elusive goal–Capitol News Illinois, July 9, 2026
Funding has improved for poor schools, but property tax inequities persist.
Illinois ‘reviewing’ DOJ’s threat to prosecute state election officials over noncitizen voting–Capitol News Illinois, July 8, 2026
Letter is latest in a series of efforts to crack down on unfounded allegations of vote fraud.
Democratic state Rep. Carol Ammons and Champaign County Clerk Aaron Ammons indicted on fraud and obstruction charges–Chicago Tribune, July 8, 2026
A six-term state lawmaker from downstate Urbana was temporarily removed from legislative committee assignments and barred from meetings of the House Democratic caucus Wednesday after a federal grand jury indicted her this week on charges including wire fraud and obstruction.
Fiscal year 2026 ends with $56.3 billion in revenues, $1 billion more than estimates–The Daily Line, July 8, 2026
Illinois collected a record $56.3 billion in fiscal year 2026, about $1 billion more than estimates.
Ethics committee passes ordinance prohibiting city officials, employees from using insider information in prediction markets–The Daily Line, July 7, 2026
The City Council Committee on Ethics and Government Oversight on Tuesday approved an ordinance that clarifies that city officials and employees cannot use confidential and proprietary information to place wagers on prediction market platforms like Kalshi and Polymarket.
‘Underdog’ Tracy says he’s ‘answering a call of duty’ by running for Durbin’s seat–Capitol News Illinois, July 7, 2026
The Republican nominee for U.S. Senate sat for an interview with Capitol News Illinois.
Illinois bill awaiting Pritzker OK would add oversight on private equity firms buying disability group homes–Chicago Tribune, July 7, 2026
By the time Illinois notified group home provider Broadstep two years ago that it was revoking its license, the list of problems documented by state investigators spanned nearly seven pages.
South suburban Democrats move to replace former Rep. Harry Benton after undisclosed ethics findings–ABC7, July 6, 2026
The process to replace former state Rep. Harry Benton is underway after the Plainfield Democrat resigned last week following an ethics investigation that legislative leaders described as revealing “outrageous and unbecoming behavior.”
What’s in the Illinois Tollway’s $26.5 billion construction program?–Chicago Tribune, July 5, 2026
From a seismic interchange redo to an O’Hare International Airport facility, the Illinois State Toll Highway Authority’s sprawling new $26.5 billion capital program is a lot of concrete to absorb.
Illinois Rep. Harry Benton resigns after investigation into conduct Speaker Welch called ‘outrageous’–Chicago Tribune, July 3, 2026
Embattled Democratic state Rep. Harry Benton of Plainfield resigned Friday from the Illinois General Assembly, following an investigation into conduct House Speaker Emanuel “Chris” Welch described as “outrageous, unethical, and unbecoming of a member” of the Illinois House.
Cuts to Illinois attorney general’s office, amid fights with Trump, are perplexing–Chicago Sun-Times, July 3, 2026
About a week after the state budget passed both chambers in the dark of night, Attorney General Kwame Raoul spoke to the City Club of Chicago to complain that his budget was cut by $10 million.
State ends fiscal year strong — surpassing initial estimates by $1B–Capitol News Illinois, July 2, 2026
Much of revenue overperformance was already allocated in supplemental spending plan.
Gov. JB Pritzker says he’s preparing for Supreme Court fight over assault weapons ban–Chicago Tribune, July 2, 2026
Gov. JB Pritzker on Thursday said he’s working to ensure Illinois has help from top experts to defend its assault weapons ban, after the U.S. Supreme Court indicated this week it would hear arguments over similar bans in Cook County and in Connecticut.
Democratic chairs choose teachers union leader to replace Holmes on ballot–Capitol News Illinois, July 2, 2026
Jared Ploger lost a House primary election by 27 points in March.
Rules committee advances ballot questions for 2026, 2027 elections–The Daily Line, July 10, 2026
The City Council Committee on Committees and Rules on Thursday advanced multiple questions for the November 2026 and February 2027 ballots and measures to require downloadable videos of council business.
A Justice Department probe of E. Jean Carroll’s Trump suit landed in Chicago. But why?–Crain’s Chicago Business, July 10, 2026
The Justice Department is investigating a nonprofit that helped pay for E. Jean Carroll’s sexual-assault lawsuit against Donald Trump and has turned over the probe to the federal prosecutor’s office in Chicago.
CTA crime has dropped for 6 straight months amid security surge, agency boss says–Chicago Sun-Times, July 8, 2026
Nora Leerhsen, the mass transit authority’s interim boss, spoke about the numbers at the agency’s Wednesday board meeting, pointing to a 30% decline in all reported transit crime versus 2025.
City facing potential $130M shortfall for 2026 as mayor, rival budget coalition trade blame on implementation of new revenue sources–The Daily Line, July 8, 2026
Mayor Brandon Johnson on Tuesday revealed the city is eyeing a potential $130 million revenue shortfall this fiscal year as multiple new revenue sources implemented in the council-driven 2026 budget have failed to materialize, confirming fears expressed by the city budget team last winter.
Chicago midyear budget claims $131.7M shortfall–Chicago Sun-Times, July 7, 2026
A leading voice for the renegade City Council bloc that waged a budget rebellion against Mayor Brandon Johnson accused him of “sabotaging” their alternative $16.7 billion budget to make his doomsday scenario come true.
Cardiologist and whistleblower Dr. Lisa Nee to run for Chicago mayor–Chicago Tribune, July 7, 2026
A Chicago cardiologist and medical whistleblower is entering the crowded race for mayor, promising to face the city’s problems free of special-interest connections and with a doctor’s even hand.
Why Curtis Tarver’s Downtown Chicago Bears Stadium Offer Is Perfect. And Tragic–Sports Mockery, July 6, 2026
The Chicago Bears stadium saga has once again settled into a quiet period. Team brass is busy running tests on the Hammond, Indiana site while also trying to put together legislation that could get enough votes in the Illinois legislature. All the while, the city of Chicago itself continues trying to push for a solution that keeps the team in the city.
The port strike, the longshoremen and the mayor: Labor strife at Chicago’s port comes with political implications for Mayor Brandon Johnson–Chicago Tribune, July 5, 2026
The port is the center of Chicago’s maritime economy. But labor strife here is spilling off of the docks and into City Hall, with political implications for Chicago Mayor Brandon Johnson, himself a former labor organizer who is expected to run for reelection in less than a year.
Fireworks, parades and community mark America’s 250th in Chicago–Chicago Tribune, July 4, 2026
Crowds fanned out across the Chicago area Saturday to celebrate the Fourth of July, marking 250 years of American independence with colorful parades, beach days and backyard barbecues.
Appeals court sides with city on Chicago police union COVID vaccine mandate case–Chicago Tribune, July 2, 2026
The latest chapter in a yearslong legal scuffle between the city of Chicago and two of its main police unions over COVID-19 vaccine mandates has ended with a city victory, though the fight could continue.
Once Packed with Day Laborers, a Chicago Hiring Corner Empties Out Under Immigration Crackdown–Borderless, July 2, 2026
At a Shell gas station that has drawn day laborers for decades, immigration raids have scared off both workers and the contractors who hire them, prompting a network of volunteers to offer support and a sense of safety.