HARRISBURG — Highlights of Gov. Tom Corbett’s $27.1 billion state spending plan for the year that starts July 1:



The big picture

• No change in spending from the current fiscal year’s approved budget.
• About $27.1 billion derived from taxes, fees and other state revenue sources.
• No increase in the state income or sales tax.

Revenue

• Projected general revenue growth of $1.2 billion, or 4.7 percent, in 2012-13.
• A projected $93 million surplus at the June 30 end of the fiscal year.
• The continuation of the scheduled phase-out of the capital stock and franchise tax on businesses, now scheduled to expire in 2014. The rate drops from 1.89 mills in 2012 to 0.89 mills in 2013. Collections would drop from $727 million to $479 million.
• No tax on natural gas drilling.
• The amount of sales-tax money that retailers are allowed to keep if they turn over the revenue to the state on time would be capped at $250 a month.

Spending

• $10.5 billion, no change, for the Department of Public Welfare, which includes health care for the poor, child care and services for the disabled.
• $5.4 billion, a 0.8 percent increase, for instruction and operations in school districts.
• $1.9 billion, no change, for the Corrections Department.
• $1.1 billion, a 7.5 percent increase, for payments on debt.
• $1 billion, no change, for special education.
• $916 million, a 53 percent increase, for school employee pensions.
• $542.3 million, a $4 million increase, for public school pupil transportation.
• $395.7 million, a 6 percent decrease, in financial assistance for college students through the Pennsylvania Higher Education Assistance Agency.
• $330.2 million, a 20 percent decrease, for the 14 state-owned universities in the State System of Higher Education.
• $298.9 million, no change, for the judiciary.
• $260.8 million, a 4 percent decrease, for the Legislature.
• $221.9 million, a 4 percent decrease, for community colleges.
• $126.6 million, an 8 percent decrease, for the Department of Environmental Protection.
• The elimination of $100 million in “accountability” grants for public schools.
• $163.5 million, a cut of 28 percent, for Penn State.
• $95.2 million, a cut of 30 percent, for Pitt.
• $97.9 million, a cut of 30 percent, for Temple.
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Education

• Public schools would see basic subsidies rise about $45 million to $5.4 billion, but would lose $100 million in grants that helped fund full-day kindergarten.
• The basic subsidy would be consolidated with aid for transportation and certain other school costs into a new block grant that also would give school boards more latitude in deciding how the money is spent.
• Proposes changes in new high-school graduation requirements built around the Keystone Exams. It would delay full implementation of the tests by two years to 2017, reducing the number of tests and eliminating a requirement that students’ scores be part of their individual course grades. It would cost $15 million.

Welfare

• $319 million in savings from the proposed elimination of cash payments for about 60,000 participants in the General Assistance program and new minimum work requirements, for about 30,000 General Assistance recipients who are medically needy.
• $168 million in savings from the consolidation of seven existing programs – including community mental health services, behavioral health services and assistance for the homeless – into a proposed Human Services Development Fund Block Grant that allows counties more flexibility in spending the money. Funding for the programs would be set at 80 percent of this year’s level.

Sources: State budget documents, Corbett administration