The General Assembly’s surplus has reached $307 million, a $7 million increase, according to the newest audit report.

The news about the continuing surplus comes as Gov. Josh Shapiro and state lawmakers debate about whether the state has adequate financial reserves for new spending or is heading into deficit in the next fiscal year.

Shapiro said his new $53.2 billion budget proposal maintains fiscal responsibility while Senate Republican leaders said they will work to control the growth in state spending.

The Legislative Audit Advisory Commission (LAAC) voted unanimously without debate Feb. 3 to accept the audit for Fiscal Year 2024-25.

The annual meeting is a Groundhog Day type event. The commission has met in recent years while news reporters are elsewhere being briefed on the governor’s state proposed budget ahead of his budget address.

The report shows the 203-member House has a surplus of nearly $183 million; the 50-member Senate, a surplus of $44 million; and 12 legislative service agencies such as the Legislative Data Processing Center and Independent Regulatory Review Commission, a surplus of

$80 million, according to the certified public accounting firm Boyer & Ritter LLC.

The General Assembly spent $463 million on its operations in FY2024-25, according to the report.

The House spent $261 million, the Senate $144 million and legislative agencies $57.6 million during FY2024-25.

Traditionally salaries and benefits account for much of this spending.

Legislative leaders said over the years that a surplus is needed to keep their branch of government operating during a budget impasse. They refer to the possibility of a governor using a veto to strike legislative funding.

The current state budget was adopted last November after an impasse lasting more than four months. State government continued to operate during the impasse with stop gap spending.

The legislative surplus has been a contentious issue for years.

The budget signed last November gives the House and Senate a 2% increase and legislative service agencies a 4.8% increase, said political activist Eric Epstein of Rock the Capitol.

Lawmakers have a practice of transferring funds from the Legislative Data Processing Center to the caucus accounts, he added.

“It appears it is all just one big pot of money,” said Epstein.

The Legislature returned a portion of its surplus in 2011 for accountability block grants for schools when state finances were shaky following the Great Recession of 2008-09 and in 2018 to help establish the School Safety and Security Grant Program.