Special session yields $253 million in tax credits, delays AI law; counties warned of budget cuts

Special session revenue changes, a delayed AI law and proposed state budget cuts were the focus of a Lake County Board of County Commissioners work session update led by Elizabeth Rosen, political advocacy representative with Political Advocacy Incorporated.

Rosen told commissioners the special session produced about $253,000,000 in tax-credit revenue that the state expects to collect this fiscal year and that, after that action, the state still faces roughly $530,000,000 in shortfalls before the next regular session.

The state also delayed implementation of Senate Bill 205 — the 2024 AI consumer-notification law — until June 30, 2026, and advanced a financing package tied to hospital reinsurance, Rosen and staff said. County staff and commissioners spent the meeting pressing for details about which programs could face cuts and how local governments and schools may be affected.

Rosen said the special session focused first on changes to tax credits that state leaders tied back to federal rule changes in the federal HR 1 legislation; she said the package “sailed through” the session while other issues created drama at the capitol. Rosen said the…