Governor Josh Shapiro of Abington Township proposed on Tuesday a $51.5 billion state budget in his annual address, The Philadelphia Inquirer reported today.

The proposal would increase the state’s spending by 8% from 2024. If passed, it would mark the first time Pennsylvania’s state budget has topped $50 billion, The Inquirer said.

Shapiro’s 90-minute speech to a joint session of the state House and Senate called for major investments in health care and education along with government efficiency, as Pennsylvania expects a $4.5 billion revenue shortfall this year.

Shapiro suggested several new revenue streams, including the taxation of recreational marijuana and gambling skill games.

“We have the resources we need to make smart investments now and maintain a responsible balance in reserve,” Shapiro said.

A budget deal won’t take place until the summer, The Inquirer said.

The full speech is below:

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