llinois is in the process of consolidating early childhood services into a new agency, the Illinois Department of Early Childhood (IDEC). The Department will assume responsibility for programs that were previously spread across multiple state agencies, with the goal of creating a more streamlined and coordinated system. The transition is designed to simplify access for families, reduce administrative burdens for providers, and strengthen oversight of state resources. State transition…
Each fall, the Governor’s Office of Management and Budget (GOMB) issues its Illinois Economic and Fiscal Policy report, which serves as the State of Illinois’ (Illinois or the ‘State’) primary long-term fiscal planning document and an early indicator of whether Illinois is structurally balanced heading into the next budget year. The 2025 edition of the report, released on October 9, 2025, about a month earlier than required by statute, signals an increasingly strained fiscal environment due to…
Over 41 million individuals rely on the federal Supplemental Nutrition Assistance Program (“SNAP”) to assist in buying food each month—including nearly 1.9 million individuals in Illinois. The current federal government shutdown threatens the funding of these benefits in the near term, and soon-to-be-implemented programmatic changes in federal policies present additional fiscal challenges to states across the country, not to mention budget pressures on SNAP participants. These…
This dashboard allows for viewing of grant funding that flows to Illinois state governments, local governments, and nonprofit institutions, with one view including Medicaid grants and one excluding Medicaid grants. Both views do not include other types of federal funding such as direct transfers (e.g., Social Security, SNAP) or contracts.
The State of Illinois’ FY2026 enacted budget, signed June 16, builds modestly on the prior year with 3.8% increases in revenues and expenditures, but it relies heavily on new and expanded taxes, one-time fund sweeps, delayed transfers, and other short-term measures to balance. While the budget funds statutory pension contributions and provides targeted increases in education, healthcare, and human services, it does not advance long-term fiscal priorities such as building rainy day reserves,…
Over the past three decades, Illinois’ state government workforce has declined significantly from a peak in FY2001, with persistent staffing shortages despite recent increases in budgeted positions. High vacancy rates—driven by outdated hiring systems, labor market competition, and structural challenges—have strained the state’s capacity to deliver services, particularly in public safety and healthcare. Major disruptions, including early retirement incentives, the Great Recession, a prolonged…
On July 4, 2025, President Trump signed into law a major budget reconciliation bill that significantly reduces federal Medicaid spending, surpassing the cuts proposed in the House version passed in May. In Illinois, the law is expected to result in a $48 billion (20%) reduction in federal Medicaid funding over ten years. The state anticipates millions in administrative costs to comply with the new mandates, and state officials estimate that roughly 330,000 Illinois residents will lose Medicaid…
The $55.1 billion state spending plan signed into law Monday by Pritzker marked one of the toughest budget seasons of his tenure, amid federal funding uncertainty under President Donald Trump.
Given the structural deficit CPS is currently combating, it will likely need to request some form of increased financial support from the State. An SFA with oversight and audit authority could be a potential counterbalance that allows legislators to have more confidence in the District’s ability to use additional support wisely. Although the revival of the School Finance Authority is a potential tool for financial reformers, state legislators should study the situation carefully to ensure that…
by A.D. Quig, Olivia Olander, and Jeremy GornerJune 12, 2025
