Last-Minute Illinois Budget Boost: Democrats Embrace Sports Betting Increase!

SPRINGFIELD — Illinois lawmakers have approved a $55.2 billion budget just minutes before a critical deadline. This budget aims to address a $1 billion shortfall by increasing taxes on smokers, gamblers, and large out-of-state companies.

This year, negotiations were smoother compared to last spring’s chaotic session. Democrats passed the budget with little infighting, even though some progressives objected to cuts in health care for undocumented immigrants. Representative Eva-Dina Delgado urged her colleagues to support it, saying, “It’s not perfect, but vote yes.” The budget passed with a vote of 75-41, though some Democrats broke ranks, especially in the Senate.

One significant cut involves the Health Benefits for Immigrant Adults program, which would eliminate coverage for about 33,000 people in Illinois. Representative Lisa Hernandez expressed her concerns, noting that such cuts could lead to higher hospital costs in the long run. Despite her apprehensions, she ultimately supported the budget.

Illinois House Speaker Emanuel “Chris” Welch called the budget responsible and balanced. Governor JB Pritzker plans to sign it, emphasizing that it serves working families without raising their taxes.

The budget does retain some funding for older undocumented adults, but concerns linger about future cuts, especially with potential federal funding reductions under the Trump administration.

To make up for the deficit, lawmakers introduced new taxes, including a quarter or 50 cents on each online sports wager. This move could particularly affect companies like DraftKings and FanDuel. Additionally, cigarette and tobacco taxes will rise to 45%. Although a proposed 10% digital advertising tax was dropped, a new measure to tax large out-of-state companies is expected to generate an extra $72 million. A tax amnesty program aims to collect around $198 million from delinquent taxpayers.

Democrats said this budget addresses current needs without burdening working families. Representative Robyn Gabel highlighted the careful planning that went into the budget amidst uncertainty.

In contrast, Republicans criticized the budget, citing the $1 billion tax hike and other controversial measures. Senate Minority Leader John Curran argued that the budget reflects a “tax-and-spend” mentality that hurts Illinois families. House Minority Leader Tony McCombie echoed that sentiment, particularly against pay raises for legislators tied to inflation.

Unlike past sessions that often ended in last-minute chaos, this budget was completed just before midnight on May 31, after several closed-door discussions. Some lawmakers voiced concerns about the transparency of the process, arguing they did not have enough time to review the details.

This budget marks a significant moment in Illinois politics, especially as the state navigates financial challenges and differing priorities across party lines. With ongoing national debates about spending and taxation, the decisions made in Springfield will resonate in the lives of many Illinoisans.

For a deeper understanding of the financial implications, check the latest analyses from reputable sources like the [Illinois Policy Institute](https://www.illinoispolicy.org) and the [Center for Budget and Policy Priorities](https://www.cbpp.org) which provide insights on state budgets and fiscal health.

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