The Commonwealth's fiscal year runs from July 1st to June 30th. The fiscal year is always designated by the year in which it ends; thus, fiscal year 2008 (FY '08) designates the budget year ending June 30th, 2008.

The annual budget for the Commonwealth, known as the General Appropriation Act, originates in the form of a recommended budget that the Governor submits in January each year to the House of Representatives as House Bill, No. 1 (House 1). Just as any other legislative proposal, House 1 requires three readings in each chamber, followed by engrossment and enactment by both chambers before submission to the Governor for his approbation.