Illinois lawmakers approve $46.5 billion budget with tax relief for residents

SPRINGFIELD, Ill. - Illinois lawmakers approved a $46.5 billion budget early Saturday that includes $1.8 billion in election-year tax relief and a $1 billion deposit into the state’s rainy day fund.

The Illinois Senate approved the budget plan on a 34-19 vote late Friday, while the House worked through the night before giving its approval early Saturday on a 72-42 vote.

The budget relies on a robust post-pandemic economy and health tax revenues to include $1.8 billion in mostly temporary tax cuts that track closely with Gov. J.B. Pritzker’s election year proposal last winter.

The plan includes a direct payment to Illinois residents making less than $200,000 per year or $400,000 per year for couples filing jointly. Each taxpayer would receive $50, plus $100 for each dependent child, capped at three.

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It also includes Democratic legislative leaders’ response to soaring prices with temporary tax breaks on gas, groceries and real estate levies, and also includes a permanent expansion of a tax credit for low- and moderate-income taxpayers.

The budget also includes more than $200 million for new public safety initiatives that answer Republican criticism that Democrats were not doing enough to address rising crime.

The budget plan, which also puts $1 billion into a state "rainy day" fund, now awaits Pritzker’s signature. It would go into effect on July 1, the start of the state’s fiscal year.