Illinois Legislative News: March 9, 2026
Third Reading Consulting Group
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