Illinois projects $3.2 billion budget deficit for 2025 fiscal year

Illinois is facing a projected $3.2 billion budget deficit for the fiscal year starting in July 2025, according to a report from Governor JB Pritzker's Office of Management and Budget. This marks a significant increase in the budget gap compared to previous years. The state's economy is struggling, with a 5.3% unemployment rate, and government costs are rising. Without changes to spending or revenue, the deficit could grow to $4.3 billion in 2027 and $5.1 billion in 2028. Democratic leaders may need to consider budget cuts or tax increases to address the crisis. Previous tax hikes have been politically challenging, and bipartisan cooperation may be necessary as they navigate this difficult financial situation.