Nonprofit Sector + Proposed FY24 State Budget

The General Assembly is actively considering a variety of budget proposals and will enact the FY24 budget by late May 2023. In February, the process began with the Governor’s budget, which reflects dramatic improvements to the state’s financial position. The State will end current fiscal year FY23 and enter FY24 in a strong position, with multiple recent credit rating increases, sizeable reductions in debt, and savings in the rainy day fund. These positive developments shore up the State’s options as experts warn of a recession or slow-down by FY25. Reactions to the Governor’s budget from sector stakeholders were generally positive, while most are, as in prior years, calling upon the legislature to make meaningful structural reforms including revenue solutions, deeper investment in historically disinvested areas and populations, more support for the workforce, and permanent relief for lower income residents and families.  

Read an in-depth analysis of the proposed FY24 budget and key insights impactful to the social impact sector below.

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New Programs, Expansions and Key Changes

The Governor and General Assembly are considering several key new and increased program appropriations, including major investments in early childhood, housing, the health and human services workforce and other new grant programs. Human services received the largest spending increase in the Governor’s budget, at $912 million. Education, including higher education, was next at a $791 million increase. Healthcare costs will rise by $709 million and public safety expenditures will go up by $224 million.

Healthcare Works Illinois

Reinvests $450 million over multiple years in Healthcare Works Illinois, a program to preserve and grow the healthcare workforce, providing funding for an expanded entry pipeline for healthcare workers, continuing education trainings for providers and other vital investments in staff retention and recruitment that would result in expanded healthcare access. Includes $25 million for Pipeline for the Advancement of the Healthcare (PATH) Workforce Program via the community college system for nurses, certified nursing assistants, respiratory therapists and emergency medical technicians; also recommends adding $25 million for physician rate increases and $3 million for the Healthcare Workforce Loan Repayment and Scholarship programs.

Home Illinois

$350 million to target the prevention of homelessness, provide crisis response, expand housing support and increase job opportunities for the homeless, including $26 million to provide homeless prevention services to 5,000 more families, $30 million to maintain court-based rental assistance, $155+ million to support unhoused populations seeking shelter and services, $25 million in Rapid Re-housing services to 1,000 households, $40 million for Permanent Supportive Housing to develop 90+ new permanent supportive housing units, $12.5 million to create 500 new scattered site permanent supportive housing units, $37 million for Emergency Shelter Capital to create over 460 non-congregate shelter units, $30 million to provide street outreach, medical respite and other shelter diversion supports, and $5 million for a new workforce development pilot to help homeless adults attain and retain employment.

Illinois Grocery Initiative

A new $20 million initiative to address food insecurity among Illinoisans living in urban and rural food deserts by incentivizing the opening of grocery stores, by independent grocers or local governments, in affected communities across the State and $2 million for buying produce from local farmers.

Medicaid Changes as COVID Emergency Ends

Since March 2020, due to COVID, the federal government has provided an enhanced Medicaid match (+6.2%). The Governor’s budget adapts to the end of the official federal public health emergency, assuming that the enhanced federal Medicaid match will end at the end of September 2022, while also projecting increased enrollment. With the end of the federal continuous enrollment requirement, HFS will begin reviewing eligibility of those enrolled in spring 2023; in response the Governor recommended $8 million for a “Ready to Renew Campaign” to help Medicaid customers maintain their coverage or transition to other health insurance. His budget also includes funding to raise the asset limit to $17,500 for senior enrollees or those with a disability (AABD) which brings this asset limit in line with those used by the Community Care Program and the Home Services Program – the first adjustment since the 1980s.

Monetary Award Program (MAP) Grants

The Governor recommended increasing total MAP funding by $100 million to $701 million, marking a 75% increase in past 5 years. Allows nearly all community college students and 40% of public university students at or below median income levels to have their tuition and fees covered through MAP and Pell Grants.

Smart Start Illinois

In a signature proposal, the Governor proposed $250 million in additional supports for childcare providers as part of a major four-year plan aimed at increasing free preschool / pre-K availability by 20,000 seats ($75 million to add 5,000 seats in FY24). The package would also expand home visiting ($5 million), provide rate increases for Early Intervention providers’ pay ($130 million), fund upgrades to the childcare management system ($20 million), doubles construction funding for early childhood providers ($100 million), adds funds to the Childcare Assistance Program ($70 million). The state’s current childcare funding model is based more on attendance, which means if attendance falls, reimbursement for providers also falls, which is difficult for nonprofit providers. Investing in pre-K also supports the workforce, which is “made up largely of women and people of color.” Another $130 million in Pritzker’s plan would fund a new system for reimbursing childcare centers, dubbed. It is aimed at increasing the hourly wage for childcare providers to the $17-to-$19 range over the next four years.


The Governor proposed increasing the TANF benefits from 30% to 40% of the Federal Poverty Level.

Transgender, Gender Non-Conforming, and Non-Binary Wellness Grants

New $3 million initiative intended to help TGNB community members to thrive.

Unfinished Business / Key Concerns

In contrast to the expansions above, there are other rollbacks and changes that are of concern to some Forefront stakeholders, as highlighted below.

Illinois Gives Act

Currently, there is no tax benefit provided to middle income and lower income taxpayers that donate to nonprofits; only wealthier itemizers receive a federal deduction. There is no state tax credit or deduction for charitable giving. Forefront strongly supports the creation of a state charitable tax credit, which was not included in the Governor’s budget. See the Illinois Gives Act (HB1241 / SB172). You can take action to support this legislation at our Social Impact Action Center.

State Child Tax Credit

Several key Forefront partners are championing a state child tax credit to support working families, which was not included in the Governor’s budget. According to the National Conference of State Legislatures, 12 states have enacted state child tax credits and among those, nine make the credit refundable. See SB 1444HB 3950.

HIV Programs

The Governor’s budget flat-funded most HIV-related programs when compared to FY23 and even cut the Getting to Zero-Illinois funding by $5 million.

K-12 Education

While the Governor recommended a $350 million increase to the state’s evidence-based school funding (EBF) formula (the minimum amount required by law), to reach full funding by 2027 to meet EBF’s 10-year goal, lawmakers would have to boost the annual increase to nearly $1 billion. Chicago Public Schools are funded at 75% adequacy, according to State Board of Education data.

Learn More

Read more about the state budget by visiting key Forefront Partners’ analyses:

Other important resources include:

For more information about Forefront’s Public Policy advocacy and efforts, email


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