Highlights of Gov. Tom Corbett’s $27.3 billion state spending plan for the year that starts July 1:

THE BIG PICTURE• An overall decrease in spending of about 3 percent.• About $27.3 billion in taxes, fees and other state revenue.• No increase in the state income or sales tax.

REVENUE• Projected revenue growth of $1.1 billion, more than 4 percent, in 2011-12, including transfers from the national tobacco settlement and other special funds.• A projected $586 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 2.89 mills in 2011 to 1.89 mills in 2012.• No tax on natural gas drilling.

SPENDING• Funding to universities in the State System of Higher Education, such as Slippery Rock University, and the four state-related institutions, including Penn State and the University of Pittsburgh, reduced by about 50 percent.• A 10 percent reduction, of $550 million, in funding for K-12 instruction in public schools.• The elimination of $484 million in “accountability” grants for public schools and reimbursements to districts for the loss of students who transfer to charter schools.• A 7 percent increase to $11.2 billion for the Department of Public Welfare, which includes health care for the poor, child care and services for the disabled.• $1.95 billion, no change, for the Corrections Department.• A 9 percent increase, to $1.1 billion, for debt service payments.

STATE JOBS• 1,550 state positions eliminated, including 1,211 from the Department of Public Welfare.

ECONOMIC DEVELOPMENT• Creation of the Liberty Loan Fund, to consolidate existing private-sector financing programs, and Pennsylvania First, a $25 million competitive grant program.

Sources: State budget documents, Corbett administration