Illinois edges past budget limit with record $55.9B plan and new taxes

Illinois lawmakers approved a record $55.9 billion FY 2027 budget in a late-night vote, financed by more than $800 million in new taxes and several one-time revenue maneuvers, including a cap on net-operating-loss deductions for corporations, social-media and digital-asset taxes, a tax on targeted advertising, and a fantasy-contests tax; the package also contains fund sweeps, raises lawmakers’ pay, and signals ongoing pension-funding challenges as Illinois’ debt remains long-term and the plan relies on temporary fixes rather than structural reform.