Educating Illinois: Volume IV

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Since implementation in FY 2018, the State has provided a $300 million increase to public K-12 school districts through the Evidence Based Funding for Student Success Act, or EBF, for eight of the nine years. The funding formula has worked towards its promise of closing the drastic funding gaps between school in property-rich and property-poor districts,  as well as between schools in predominantly white communities and schools that serve predominantly Black and Latinx students.

Education, K-12 Education, Education Funding, Evidence-Based Model

Analysis of Illinois' FY 2027 Proposed General Fund Budget

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On February 18, 2026, Governor JB Pritzker delivered his 8th State of the State budget address to the General Assembly. He also released his $56.1 billion General Fund budget proposal for FY 2027 (the "FY 2027 Proposed GF Budget"), which includes a very slight year-to-year increase in spending on services of less than 1.4% in nominal, non-inflation adjusted dollars. But that ignores the impact of inflation, which drives up the cost of funding services in the public sector, just like it increases costs in the private sector.

FY 2027 GF Budget, Structural Deficit, Revenue, Spending

Fully Funding the EBF: Volume XII

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The next volume of the Fully Funding the EBF series continues CTBA’s modeling of fully funding the EBF, updated with the FY 2027 Proposed budget. The report estimates the time to full funding at the $300 million dollar minimum on an inflation-adjusted basis as well as the gap that still exists by FY 2027, the year the EBF was statutorily required to be funded.
K-12 Education, EBF, Illinois General Fund Budget

Chicago’s Corporate Fund Structural Deficit and the Need for Revenue Reform

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Chicago's Corporate Fund faces a growing structural deficit driven by a revenue base that fails to keep pace with the cost of providing the same level of public services from year to year, eroding state revenue sharing, and escalating pension obligations. One-time budget fixes cannot solve this problem; durable resolution requires recurring, economy-responsive revenue reforms.
Structural Deficit, Revenue, Spending, City of Chicago, Pensions

FY 2027 Budget Proposal: Federal Pressures Exacerbate Illinois’ Structural Deficit

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CTBA Responds to FY 2027 Budget Proposal On February 18, 2026, Governor JB Pritzker delivered his 8th State of the State budget address to the 104th General Assembly. He also released his $56.1 billion General Fund budget proposal for FY 2027 (the “Proposed FY 2027 Budget”), which includes a very slight year-to-year increase in spending on services of less than 0.5% in nominal, non-inflation adjusted dollars. But that ignores the impact of inflation, which drives up the cost of funding services in the public sector, just like it increases costs in the private sector. After adjusting for inflation, proposed FY 2027 spending on public services will be about 1% less than FY 2026. Read CTBA's response.

A Fair Tax: Implementing a Graduated Rate Income Tax to Support Illinois, Volume II

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Illinois is suffering from a long-term structural deficit in its General Fund that cannot be eliminated without either cutting important core services that families across the state rely on, or implementing new progressive revenue streams. Given that Illinois is already low spending on services when compared to much of the rest of the nation after having cut its real investment in core services for decades, continuing to cut spending in these areas would harm many communities, especially those with the least local resources. Illinois has a flawed tax policy which resulted in poor revenue generation —part of which stems from its flat rate income tax. After the Fair Tax Amendment failed to pass in a referendum in November of 2020, Illinois continues to trail behind in revenue and fell to 8th place in the nation for tax regressivity in 2024 according to the Institute on Taxation and Economic Policy. If Illinois' constitution were to be amended to allow for a graduated rate income tax it would not only raise more revenue to help mitigate the state's structural deficit, but would do so in a progressive way, without raising taxes on middle and working class families.
Graduated Income Tax, Income Tax, Fair Tax

Analysis of Illinois’ FY 2026 Enacted General Fund Budget

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Despite the elimination of the accumulated deficit and a projected FY 2026 General Fund (FY 2026 GF Budget) surplus of $370 million, the enacted budget relies on $1.1 billion in manufactured, one-time, and recurring revenue enhancements to sustain its funding levels. The total net appropriation of $55.2 billion dedicates $15.9 billion (28.7%) to Hard Costs, including the back-loaded $11 billion pension contribution.
FY 2026 GF Budget, Structural Deficit, Revenue, Spending

The Public Safety Tier II Adjustment Act: The Wrong Way to do the Right Thing

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In August 2025, Illinois enacted Public Act 104-0065, also referred to as the “Pension Sweetener,” to increase pension benefits for Chicago police officers and firefighters hired after 2011 and bring them into compliance with federal Social Security Safe Harbor standards. While the measure helps address inequities in the Tier II system and strengthen retirement security, it lacks a dedicated funding source and shifts the full cost onto the City of Chicago—already facing a $1.2 billion budget deficit in FY 2026 and reduced state revenue transfers. Sustainable reform will require coordinated state-local action to restore historic revenue-sharing practices, re-amortize pension debt, and ensure that benefit adjustments are paired with stable, long-term funding mechanisms.
Chicago Pensions, City Employee Pensions, State Legislation

Fully Funding the Evidenced-Based Formula: Volume XI

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Volume XI of the Fully Funding the EBF series continues CTBA’s modeling of fully funding the EBF to 90% of Adequacy.
K-12 Education, EBF, Illinois General Fund Budget

Educating Illinois: Volume III

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Eight years after implementation, including seven that included New Tier Funding, or new year-over-year funding, Illinois' funding formula for K-12 Education—the Evidence Based Funding for Student Success Act, or EBF—has worked towards its promise of closing the drastic funding gaps between school in property-rich and property-poor districts,  as well as between schools in predominantly white communities and schools that serve predominantly Black and Latinx students.

Education, K-12 Education, Education Funding, Evidence-Based Model