HARRISBURG, Pa. (AP) — Pennsylvania is sitting on a fat budget reserve, a healthy and growing surplus in the current budget year, and billions in unspent federal coronavirus relief funds.

Governor Tom Wolf is about to lay out his eighth and final state budget proposal. For him, Pennsylvania’s healthy account balances make this a “magical year” in “budget surplus territory” that won’t require higher taxes or the pain of spending cuts.

The governor’s annual budget address is scheduled for Feb. 8. It will be followed by weeks of hearings by the appropriations committees in the House and Senate. The deadline to get a deal is July 1.