The Commission on Government Forecasting and Accountability (COGFA) released its February monthly state revenue update at the beginning of March. Two-thirds of the way through fiscal year (FY) 2026, Illinois has raised $34.134B, up 4.1% or $1.337B over this point in the previous fiscal year. When factoring out any one-time revenues received, revenue growth is even stronger at 4.3%. Notably, state revenues have been the source of growth as total state revenues are up 5.6% or $1.901B and federal revenues are down 6.0% or $172M from this time last year.
Two of the state’s big three revenue sources have seen strong growth through the first two-thirds of FY 2026: personal income tax is up 4.2% and sales tax is up 4.3%. However, corporate income tax revenues are down 6.6%, in part due to the Department of Revenue’s “true-up” process, which shifts a larger portion of taxes on corporations through personal income tax, at the expense of corporate income tax. All other state revenue sources are up a combined 12.0%, driven by strong growth in estate tax revenues and insurance taxes and fees. Transfers into the state’s General Revenue Fund are up a combined 40.8%, driven by significant growth in sports wagering and Income Tax Refund Fund (ITRF) transfers. While sports wagering is expected to sustain a higher revenue level, transfers from the ITRF are projected to return to more typical levels in the next fiscal year.
Illinois’ FY 2026 budget projected 2.4% revenue growth, which has been far outpaced thus far. However, with tax filing occurring in April, the final few months will be crucial to determining the state’s level of revenue growth. Revenue growth in the current fiscal year is important as it gets baked into the assumptions for the state’s FY 2027 budget. Although state revenue growth has been strong, the state expects to feel the impacts of federal Supplemental Nutrition Assistance Program (SNAP) cuts and has been threatened by Trump administration funding cuts to various other programs in FY 2027. If Trump administration cuts, currently being held up in court, are allowed to take effect, they could more than cancel out any positive impacts of state revenue growth. Gov. JB Pritzker’s FY 2027 budget proposal estimated a conservative 1.5% revenue growth level, with over 70% of the projected growth coming from new revenue sources.
Important Upcoming Dates – Statewide
March 13 – Initial Chamber Committee Deadline (Senate)
March 17 – Illinois Primary Election
March 27 – Initial Chamber Committee Deadline (House)
April 17 – Initial Chamber Third Reading Deadline
May 8 – Opposite Chamber Committee Deadline
May 22 – Opposite Chamber Third Reading Deadline
May 31 – Adjournment
November 3 – Illinois General Election
In the News
Raoul, 21 attorneys general sue Trump administration over 10 percent tariff – The Daily Line, March 6, 2026
Attorney General Kwame Raoul and a coalition of 21 attorneys general sued President Donald Trump Thursday challenging the 10 percent tariff instated after the U.S. Supreme Court struck down the president’s previous tariffs.
Senate committee approves bill allowing downstate board of review members to live outside of the county – The Daily Line, March 6, 2026
The Illinois Senate Local Government Committee approved a measure Wednesday that would allow board of review members in certain areas to live outside the county.
Illinois politics set to enter new era in 2026 midterm elections – CBS News, March 5, 2026
Illinois’ primary elections are less than two weeks away, and from U.S. Senate to Illinois Governor to dozens of people vying to replace iconic names in the U.S. House, it’s a stacked ballot.
Illinois Municipal League pushes for state municipalities to get full cut of income tax, opposes governor’s state zoning overhaul – The Daily Line, March 5, 2026
The Illinois Municipal League (IML) is proposing a legislative agenda this spring that would allow non-home rule municipalities to impose their own motor fuel tax — and pushes against some of the governor’s key proposals.
Lawmaker proposes property tax credits as housing debate continues – The Center Square, March 4, 2026
Metro East Sen. Erica Harriss, R-Glen Carbon, announced a package of bills on Wednesday. Harriss said Senate Bill 3959 provides a $500 tax credit for first-time home buyers. SB 3782 creates the Fairness in Property Tax Foreclosure Task Force. Harriss also introduced SB 3781, amending the Illinois Income Tax Act to make residential property taxes refundable.
Illinois comptroller race 2026: Democratic primary field angles for votes as Susana Mendoza steps down – Chicago Tribune, March 4, 2026
Illinois’ finances were “one hot mess,” as Comptroller Susana Mendoza put it, the last time voters went to the polls to elect the state’s chief fiscal officer.
Trump DOJ reverses course in fight against law firms, including Jenner & Block – Crain’s Chicago Business, March 3, 2026
The Trump administration abruptly reversed course today and resumed its fight against four law firms — including Chicago-based Jenner & Block — less than a day after telling a federal appeals court it would abandon its defense of executive orders that sought to cripple their operations.
Former DOJ attorneys intervene in lawsuit seeking sensitive Illinois voter registration data – Capitol News Illinois, March 3, 2026
Eighteen former U.S. Department of Justice attorneys filed a brief in federal court this week opposing the Trump administration’s lawsuit that seeks access to sensitive personal information about every registered voter in Illinois.
Pritzker denies traveling on Epstein’s plane after Bill Clinton’s since-recanted testimony – Capitol News Illinois, March 3, 2026
Gov. JB Pritzker denied a since-recanted comment by former President Bill Clinton that Clinton thought the pair may have traveled together on a plane owned by convicted sex trafficker Jeffrey Epstein.
Illinois lawmakers call for a governor-appointed Epstein investigatory commission – Capitol News Illinois, March 2, 2026
Democratic lawmakers Monday joined advocates for women and survivors of sexual abuse to introduce House Bill 5723, called the Illinois Epstein Files Investigation Act. The bill, if passed, would create a commission to investigate Illinois-based crimes connected to Epstein’s network. Those would focus primarily on the stories of victims in Illinois and crimes that may have occurred in Illinois.
How Illinois’ Road Fund will help fund transit, especially in the Chicago region – Capitol News Illinois, March 2, 2026
Senate Bill 2111, which passed in the final hours of the last day of the session, included $1.5 billion in transit funding. That includes redirecting a projected $860 million in sales tax revenue charged on motor fuels from the Illinois Road Fund to public transportation operations. The bill, which will take effect in June, distributes 85% of the diverted funds to Chicago-area transit and 15% to downstate transit agencies.
OPINION: Most of Illinois is in a drought, and the state is unprepared – Chicago Sun-Times, March 2, 2026
Last week, the U.S. Drought Monitor showed parts of 19 Central Illinois counties are suffering from “extreme drought.” That means we’re looking at “major crop/pasture losses, extreme fire danger, widespread water shortages or restrictions,” according to the National Oceanic and Atmospheric Administration.
Illinois could tackle online pricing that charges customers different prices for the same thing – Our Quad Cities, March 1, 2026
There are two pieces of legislation in front of state lawmakers. Neither would outlaw the practice. House Bill 4248 would force companies to let customers know they use algorithmic pricing and let you opt out if you want to. House Bill 4544 wouldn’t give you a chance to opt out. It would only force companies to tell you they do it.
Small cities are a big part of the O’Hare expansion that alarmed the FAA – Crain’s Chicago Business, March 6, 2026
It’s going to be a lot easier to get from Chicago to Erie, Penn.; Bristol, Tenn.; Idaho Falls, Idaho; or Columbia, S.C. — thanks to the throwdown at O’Hare International Airport between United and American airlines.
Chicago appeals court vacates judge’s use-of-force injunction on immigration agents – Chicago Tribune, March 5, 2026
A Chicago federal appeals court on Thursday vacated a lower court’s injunction placing use-of-force restrictions on immigration agents during Operation Midway Blitz, calling it “constitutionally suspect” and questioning the manner in which the district judge dismissed the underlying suit.
Morningstar inks $5M tech partnership with U of I to secure talent pipeline – Crain’s Chicago Business, March 5, 2026
Investment research firm Morningstar today announced a five-year partnership with the University of Illinois’ Gies College of Business that gives students access to the company’s proprietary financial software — and gives Morningstar a pipeline to the school’s top talent.
Pritzker urges Secretary of State Marco Rubio to help stranded Americans in the Middle East – Chicago Sun-Times, March 4, 2026
The Democratic governor detailed his concerns, and offered suggestions, in a letter penned to Rubio and Mora Namdar, Assistant Secretary of State for Consular Affairs. It came after Pritzker participated in a staff-level briefing with the State Department on Tuesday, along with other governors’ offices and congressional offices.
Chicago-based construction firm Clayco launches solar energy business – Chicago Sun-Times, March 4, 2026
Clayco Power and Energy, led by Ryan Johnson, will add nearly 1,000 employees across the U.S. by 2027 and is expected to generate about $300 million in annual revenue. Clayco is currently designing a solar and battery storage system on 350 acres in Manteno, about an hour south of Chicago. Construction is scheduled to start this June.
CME, Cboe shares rally to record high as volumes surge on Iran war – Crain’s Chicago Business, March 4, 2026
CME Group and Cboe shares surged to record highs Monday as war with Iran drove traders to the Chicago exchanges’ oil futures and volatility contracts.
Chicago business, labor leaders look ahead to hosting another DNC in 2028 – FOX 32, March 3, 2026
Chicago could host the Democratic National Convention again in 2028, and city leaders, restaurant owners, and labor representatives say the city is well-prepared to handle another high-profile event.
Chicago Fire FC breaks ground on new South Loop stadium – Crain’s Chicago Business, March 3, 2026
Chicago Fire FC today held a groundbreaking ceremony for its $750 million, 22,000-seat stadium at 78 in the South Loop, symbolically kicking off what will be the most expensive Major League Soccer stadium ever built.
Chicago on shortlist for 2028 Democratic National Convention – Crain’s Chicago Business, March 2, 2026
Chicago is one of five cities under consideration to host the 2028 Democratic National Convention. The Democratic National Committee announced today Chicago is advancing in the application process along with Atlanta, Boston, Denver and Philadelphia to host the event now scheduled for Aug. 7 to 10, 2028.
Chicago No. 1 in annual ranking for corporate relocations – Chicago Sun-Times, March 2, 2026
The Chicago area was named the top U.S. metro for corporate relocations and site selection for the 13th year in a row by Site Selection Magazine, the World Business Chicago announced on Monday. The 40% year-over-year increase in activity represents $1.7 billion in annual earnings and the creation of an estimated 19,600 jobs.
Jackson Park Path Linking Obama Center and Griffin MSI Getting $1.2M Overhaul – Block Club Chicago, March 2, 2026
The Park District will receive $1.2 million in federal Community Project Funding to repair a portion of Jackson Park’s lagoon path, including repaving the path and the installation of surveillance cameras, lighting and wayfinding materials, according to U.S. Rep. Robin Kelly.
Suburban leaders revolt against Pritzker’s zoning overhaul – The Real Deal, March 2, 2026
Leaders from several Northwest suburban communities are lining up against Gov. JB Pritzker’s proposal to curb local control over residential development, arguing the plan would upend long-standing zoning rules, strain infrastructure and alter the character of their towns.
Troubled Harvey makes way for most new houses in decades – Crain’s Chicago Business, March 2, 2026
In financially troubled Harvey, officials say a plan to develop 16 new homes on city-owned lots is a step toward rejuvenation not only of the housing stock but of the city’s money woes. “We’re excited to get some nice homes built on that block” of at 151st and Turlington Avenue, about 23 miles south of the Loop, said Corean Davis, Harvey’s city administrator, “and get neighbors back on that block.”
Housing costs now top crime as Chicago voters’ biggest worry, poll finds – Crain’s Chicago Business, March 2, 2026
When asked which on a list of issues is most important for the mayor and City Council to work on, the No. 1 and 3 responses were property taxes (from 23% of the people polled) and the cost of housing (18%). That is, a combined 41% of people registered and planning to vote put housing affordability at the top of their list of worries, according to the poll results, which the Realtors group is releasing today.
OPINION: Bally’s valuation shows why Cook County’s tax system still needs sunlight – Crain’s Chicago Business, March 2, 2026
The land beneath the future Bally’s casino — once the site of the Chicago Tribune’s printing plant — has changed hands at nine-figure prices. Yet for the 2025 tax year, the Cook County assessor’s office placed its market value at just 17% of the most recent sale price, with an assessed value for tax purposes of roughly $5.1 million.
CTA suffers most violent attacks in decades as Trump threatens $50M funding cut over crime – Chicago Sun-Times, March 2, 2026
Aggravated assaults and batteries on the Chicago Transit Authority reached at least a 24-year high in 2025 as the Trump administration threatened to cut millions of dollars in funding after a series of jarring attacks. Unsatisfied with the CTA’s decision in December to boost the number of officers patrolling Chicago’s trains and buses, the Federal Transit Administration has threatened to withhold the money if the CTA doesn’t enact an acceptable safety plan by mid-March.
Finance committee approves measure to establish Chicago Tourism Improvement District – The
Daily Line, March 2, 2026
Hotels within the proposed district’s boundaries would be charged a 1.5 percent transaction charge annually on gross revenue earned from hotel stays to raise funds to reinvest into marketing Chicago’s tourism and hospitality industry on a national and international scale.
Downtown hotel surcharge wins city panel sign-off – Crain’s Chicago Business, February 27, 2026
The City Council Committee on Finance today approved legislation for a new Tourism Improvement District, which would add a 1.5% surcharge on downtown hotel stays. The green light to launch the so-called TID moves the measure to the full City Council, which must sign off on a plan that Chicago tourism officials say would raise $40 million a year to help compete for visitors and conventions.
OPINION: Trump cuts to CFTC Chicago office put consumers at risk – Crain’s Chicago Business, February 27, 2026
Over the last year, the Trump Administration has taken a sledgehammer to the CFTC’s Chicago Division of Enforcement, issuing reduction-in-force notices to experienced enforcement attorneys.
Hawthorne Race Course, a 134-year-old fixture in Chicago area horse racing, files for Chapter 11 bankruptcy – Chicago Sun-Times, February 27, 2026
The Stickney race track has struggled to secure an investor to build up its casino games since Illinois’ gambling expansion law passed in 2019. Hawthorne President Tim Carey said the bankruptcy filing “is the right thing to do for the Illinois horsemen and for our employees and their families.”
Chicago Loop Alliance unveils Loop Arts District, funding to address vacant stores – Chicago Sun-Times, February 27, 2026
The Chicago Loop Alliance announced plans for a new arts district in the Loop during its annual meeting Friday. The district will be supported by nearly 90 Loop arts organizations that will develop the neighborhood as an arts and culture destination.
