Gov. Pritzker hints no tax hikes or pension benefit spikes in 2026 state budget

Gov. J.B. Pritzker said raising taxes or hiking pension benefits are not first choices for in his fiscal year 2026 budget. The governor said Illinois needs to “live within our means in this state.”

Gov. J.B. Pritzker told reporters Illinois will not rely on raising taxes or be hiking pension benefits in his upcoming 2026 state budget, even though lawmakers are expected to grapple with a $3 billion shortfall next year.

Pritzker on Feb. 19 will deliver his 2026 budget address for the new fiscal year that begins in July. He told reporters in Springfield, “It’s very important we live within our means in this state and we not resort to tax increases as a way to balance the budget.” It’s a positive sign for taxpayers.

“The only time that anybody should ever look at revenue is as a last resort, when you really can’t do what you need to do when you live within your means,” he said.

Pritzker asked agency directors to tighten up budgets ahead of fiscal year 2026 as state spending is expected to grow by $3.2 billion while revenues are projected to remain constant.

The governor said Illinois needs to be financially prepared if federal program funding freezes. Pritzker even suggested state agency directors roll back state programs that could be eliminated or improved to provide better services to Illinoisans.

“I want the agencies to pay attention to what programs can we maybe freeze for the current year,” Pritzker said. “Or maybe there are things that aren’t working as well as we’d like them to and maybe we should roll them back.”

While Pritzker’s track record as Illinois governor shows he spiked state spending by nearly $15 billion since taking office in 2019 and has historically balanced budgets by raising taxes on residents, the governor’s new lease on responsible budgeting should be commended.

Illinois families already shouldered the nation’s highest combined state and local tax rate, as well as the nation’s second-highest property taxes and gas taxes to pay for its record 2025 state budget.

Lawmakers should not spend beyond the means of their constituents. Pritzker notified executive agencies to look where they can freeze spending, but later clarified that taxes could be raised – but only as a last resort.

Instead, Illinois’ public officials should focus on curtailing future budget costs through methods such as constitutional pension reform and improving core services provided with existing dollars. The Illinois Policy Institute set out a plan to fix state budgets without raising taxes in its report, “Illinois Forward 2026: How Illinois can spend responsibly.”

Illinois taxpayers need proof Pritzker is going to take a pragmatic approach and make state government live within its means. That doesn’t include tax hikes, even as a “last resort.”