Gov. Josh Shapiro proposed on Tuesday a $51.5 billion state budget in his annual address, calling for major investments in health care and education, while focusing on government efficiency as the state approaches a hefty budget shortfall.

Lawmakers and advocacy groups identify funding for education and transportation as among the most pressing needs in the next budget.

Gov. Josh Shapiro on Tuesday delivered a $51.5 billion budget proposal for the 2025-2026 fiscal year that he touted as a plan for Pennsylvania “on the rise.” It includes new investments in public education,