On February 18, Governor JB Pritzker delivered his annual budget address in Springfield. The Illinois General Assembly will now undertake negotiations to enact the budget, which may shift somewhat as conditions evolve throughout the legislative session. Nonetheless, Governor Pritzker’s proposed budget signals his education priorities and what efforts he most wants to protect and build from in an economically challenging time. In his opening, he emphasized Illinois’ strong education outcomes compared to the rest of the nation, highlighting the highest graduation rates in 15 years and massive growth in Career and Technical Education participation as key examples. Governor Pritzker said, “[We are] leading the pack because of sustained investments in education,” which continue to be reinforced by his proposed budget.
The Governor’s Office of Management and Budget (GOMB) released a report in early February highlighting the significant impact of federal budget cuts on Illinois’ economic forecast. The GOMB report highlights how reductions in federal funding, increased operational burdens, and difficult economic conditions nationwide (e.g., inflation, unemployment) increase demand on Illinois’ General Fund resources. Those resources are further depleted by tax revenue reductions resulting from federal tax law changes, resulting in an estimated $587 million decline in state revenue for FY26. Their report concludes that all of these conditions, plus the federal government’s cuts to direct grants to local programs, leave the state in a difficult position to make up the funding gap for critical programs and services. Thus, legislators will be working throughout the session to identify efficiencies and new sources of revenue.
Late last year, Governor Pritzker directed agencies to reserve 4% of spending to help mitigate federal budget impacts, and in January, the Governor sent a memo to state agencies that signaled the need for more conservative budgeting to set the tone for agency budget requests.
Despite these federal and macroeconomic headwinds, Governor Pritzker underscored his administration’s ongoing commitment to maintaining the state’s fiscal responsibility, noting progress made in recovering from previous budget crises and balancing budgets without significant cuts. Although this year’s budget aims more for maintenance than expansion, the Governor emphasized that Illinois is now better positioned to weather fiscal challenges. We commend the continued support of key education and workforce investments that ensure learners across the state can pursue clear, reliable pathways toward economic mobility.
Key Education Highlights in Illinois’ FY2027 Proposed Budget
$305 Million Increase for Evidence-Based Funding (EBF)
Last year, while Governor Pritzker proposed a $350 million increase to EBF, only $307 million was included in the enacted budget. While increases in EBF funding are welcome and necessary, the state still falls $3 billion short of full funding adequacy in K-12 schools. Advocates continue pushing for much larger increases to the EBF formula for our K-12 system than this year’s proposed $305 million increase. This has gained traction in the General Assembly, where proposals to fully fund the EBF formula by 2027 have emerged. The EBF formula seeks to address the resource inequities baked into our state’s funding systems, resulting in unequal access and outcomes for learners across the state. Increasing funding through the EBF formula can improve districts’ abilities to adequately serve their learners.
$51 million Increase in Mandated Categoricals (MCATs)
Districts face rising challenges due to inflation in MCATs, including essential services and cost centers such as transportation and free and reduced-price meals. As such, ISBE had requested an increase in MCATs to maintain current pro-ration rates for districts. The Governor’s proposed $51 million increase in FY2027 brings the total to $1.2 billion in grants for MCATs. Moving forward with an increase to the MCAT line item means districts will have some relief from using their other EBF funds at the expense of other services and programming, but many argue that significant increases to MCATs are urgent for districts’ fiscal health.
Proposed New Revenue Source: Social Media Platform Fee
Highlighting the prevalence of social media and its potential to fuel youth mental health challenges, the Governor proposed a new fee on social media platforms to generate an estimated $200 million per year to support K-12 funding.
Renewed Investment in Pathways and Career and Technical Education (CTE)
In his address, Governor Pritzker emphasized continued investment in education-to-workforce programming. “We have built a pipeline of qualified workers with the skills and training to fill the high-growth sectors of the future, but we still need more,” he said. To that end, his proposal includes notable CTE-related investments:
- The proposed Vocational Training Grant Program would provide districts and regional vocational centers with support to build and scale workforce programs.
- $50 million in new funding to create and improve Area Career Centers. This allotment within the Department of Commerce and Economic Opportunity (DCEO) capital budget would allow the agency to partner with ISBE to support Area Career Centers, where high school students could participate in CTE and earn credit hours from regional community colleges.
- $59 million in continued CTE funding to expand access to underserved students, following increases in recent fiscal years.
While CTE participation has grown to more than 300,000 students statewide, the Governor’s renewed investments will ensure high-quality CTE is accessible to even more students across the state. The Governor points to more than 200,000 job openings in the state and to strong labor market outcomes for CTE students. For example, for earnings in the trades, such as construction, Chicago is first in the country for large metro areas, with Peoria taking first for mid-sized metros, and Decatur, Champaign, and Rockford claiming second, third, and fourth, respectively, for small metros, the Governor shared.
$3.175 Million in Continued Dual Credit Funding
Since its initial approval in FY2024, the Governor’s continued commitment to funding dual credit at the Illinois Community College Board (ICCB) has been promising. By strengthening ICCB’s capacity, this investment supports the expansion of dual credit programs and partnerships across Illinois. With a reliable funding stream in place, there is strong potential for sustained collaboration with ISBE and through the newly established Dual Credit Committee to grow dual credit equitably across the state.
$16 Million Increase in Higher Education Institutional Funding
Governor Pritzker celebrated improvements in higher ed access and participation in his address and noted a need for increased investment. However, his proposed increase represents just a 1% increase in funding, which lags inflation and, in practice, amounts to a cut to higher education funding. IBHE had requested a 3% increase, largely to keep up with inflation. We anticipate this modest increase to factor into broader conversations about how that funding is distributed in increasingly resource-constrained times. Although overall institutional funding is challenging, the Governor did include critical capital investment line items for both universities ($300 million) and community colleges ($100 million).
Flat Funding for the Monetary Award Program (MAP) and AIM HIGH
Over the past several years, MAP has been modestly increased to support how the Illinois Student Assistance Commission (ISAC) can distribute need-based aid to Illinois students, particularly given the constricting federal student aid landscape. Both MAP and AIM HIGH are proposed to receive flat funding at $721.6 million and $50 million, respectively, after several years of increased funding. While an increase in funding for these programs would be preferred, it is critical to celebrate their progress in making college more affordable for Illinois students. With MAP and AIM HIGH, the number of Illinois students attending state public universities tuition-free has reached an all-time high of 44%. Further, the Governor pointed out, Illinois public university enrollment has reached a 10-year high.
Continued Investment and Support for Transforming College Admissions
The Governor’s proposed budget includes $3 million for continued investment in piloting initiatives, such as One Click College Admit, to improve postsecondary access, which represents flat funding. Although last year’s proposals to establish a new funding formula for the state’s universities and to establish community college baccalaureate programs did not pass the General Assembly, we anticipate they will re-emerge for debate this year.
Continued Investments in Teacher Preparation
The Governor’s proposal continues to support the state’s educator pipeline through several investments in teacher recruitment and preparation programs:
- $13.25 million for Golden Apple, a slight decrease from $15.75 million in FY2026, for the Scholars and Accelerators programs, which are vital to drawing more educators into our systems.
- $8 million for the Teachers of Illinois Scholarship Program, which replaced the Minority Teachers of Illinois Scholarship. This maintains flat funding for this essential investment in recruiting and preparing teachers across the state.
- $45 million for ISBE’s teacher recruitment pilot remains flat for the fourth year running, enabling ISBE to continue building capacity for addressing teacher pipeline challenges. Governor Pritzker highlighted the record-high number of teachers employed in the state as a sign that this program is working.
Looking Ahead
Governor Pritzker’s commitment to protecting education investments through challenging economic times is heartening, and we remain committed to partnering with our state agency partners to continue using funding to improve opportunities for learners, particularly those who have historically faced the most barriers.
We will continue monitoring federal and state budgetary work that impacts how learners across Illinois are supported to access and succeed throughout the education pipeline.
