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State agency spending cut plans remain unclear following Pritzker’s order

Governor signed order requiring agencies to identify cuts by late October in response to budget pressures

Illinois Gov. JB Pritzker speaks at a news conference after meeting with community violence intervention (CVI) leaders at an emergency response training to prepare for federal deployments in Chicago, Wednesday, Sept. 3, 2025. (AP Photo/Nam Y. Huh)

SPRINGFIELD – Most state agencies were required to submit spending cut plans to Gov. JB Pritzker by Oct. 23, but the governor’s office has declined to release details about those plans.

A spokesperson for Pritzker said the governor’s budget office is still reviewing the proposed cuts.

“Gov. Pritzker is taking proactive steps to protect Illinois’ fiscal stability,” spokesperson Andres Correa said in a statement. “These reviews are part of ensuring the state remains on solid financial footing and can continue delivering the core services Illinoisans depend on.”

But this lack of transparency is not sitting well with Republicans, who said Pritzker needs to be open about the cuts agencies have proposed.

“I was very much looking forward to seeing where Gov. Pritzker’s agencies identified inefficiencies and excessive spending and hoped that maybe this executive order would create a slightly more efficient government,” state Rep. Amy Elik, R-Godfrey, the House Republicans’ budget leader, said at a news conference Thursday.

Pritzker signed the executive order on Sept. 23 that requires most state agencies to “identify immediate spending reductions, including efficiencies that will result in reduced spending.” It also directed the agencies to reserve 4% of fiscal 2026 General Fund appropriations.

Pritzker issued the order in response to fears that federal policies passed in the summer will reduce state revenue and require the state to spend more as economic instability grows.

A Freedom of Information request submitted by Capitol News Illinois to review what agencies submitted to Pritzker was denied, with the governor’s office saying the agencies’ responses were draft recommendations and therefore exempt from public disclosure.

State revenue is up

The General Assembly’s bipartisan Commission on Government Forecasting and Accountability’s November report shows state revenue continues to remain up so far in fiscal 2026 compared with this time in fiscal 2025. But Pritzker’s budget office released a report in October that the state is on track to run a more than $200 million deficit in fiscal 2026 – although recent legislative action could erase some of that projected deficit.

Republicans said now is the time for the state to formulate a plan to ensure budget stability if the federal government cuts funding to the state or revenues dip.

“We’re seeing federal dollars that are no longer going to flow to Illinois based on some of our policy choices, and so as a state, we’re going to need to build up those rainy day funds, those backup plans for when we are going to have to fill in some of those gaps,” said state Rep. Regan Deering, R-Decatur.

The fiscal 2026 budget included only a 1% increase above fiscal 2025 spending, but Republicans warned back in May when it passed that Democrats were being too aggressive with spending and seeking out $700 million in new taxes to fund a spending increase.

“Now, just a few short months later, Gov. Pritzker is claiming that the very same budget he signed is not feasible and is pointing fingers at the Trump administration through politically motivated executive orders rather than solving Illinois’ problems,” Elik said.

Early mitigations

Democratic lawmakers took action during the October veto session that they hope will address the projected deficit.

Lawmakers voted to “decouple” state taxes from the federal tax code in certain areas to avoid revenue shortfalls because of tax changes at the federal level. The changes are still waiting for Pritzker’s approval but are expected to plug most of the fiscal 2026 shortfall.

Businesses are expected to be hit hardest by the changes, and Elik said the decision will make Illinois less competitive in retaining or attracting new employers.

Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.

Ben Szalinski

Ben Szalinski – Capitol News Illinois

Ben works for Capitol News Illinois. He previous reported for the Northwest Herald on local news in Harvard, Marengo, Huntley and Lake in the Hills along with the McHenry County Board. He graduated from the University of Illinois Springfield Public Affairs Reporting program in 2021. Ben is originally from Mundelein.