Pennsylvania House and Senate Appropriations Committees kick off budget hearings today to examine Gov. Josh Shapiro’s $51.4 billion spending proposal for the upcoming fiscal year. The hearings are scheduled to conclude on March 6.

The hearings and budget discussions come amid growing debate over Gov. Shapiro’s call for continued spending that uses the state’s current financial surplus to balance the budget. The Independent Fiscal Office’s latest projections highlight a growing fiscal challenge, with Pennsylvania’s structural deficit now expected to deplete the Rainy Day Fund by as early as the next fiscal year.

During the hearings, lawmakers are expected to question agency leaders about their budget proposal, specific funding requests, and other policy priorities. Today, the first day of hearings, will feature the Department of Revenue before the Senate, and the Department of Community and Economic Development (DCED) before the House.

Other notable hearings include full-day sessions for the Departments of Education on Feb. 24 and 26 and the Department of Human Services on March 4 and 5, as well as the Department of Corrections, which is under new scrutiny following the announcement of plans to close two state facilities, on March 3 and 4.

Transportation funding will again be a major topic, with the Department of Transportation scheduled to testify on Feb. 19 and 20. Attorney General Dave Sunday will appear before the House on Feb. 26.

These hearings mark the beginning of an important annual process as lawmakers review the Governor’s budget proposal ahead of the June 30 deadline for passing a new budget.