HARRISBURG — Gov. Tom Corbett’s budget office indicated Monday the governor may attempt to reduce the pensions of current public employees, a politically volatile and legally questionable solution to what has become a $41 billion unfunded liability.

In a new report on the state’s two large public-sector pensions, the budget office warned of the potential for higher taxes, program cuts, lower business growth and steeper borrowing costs because of the state’s financial obligations toward the State Employees’ Retirement System and the Public School Employees’ Retirement System.

The financial pressures from the pension systems have loomed over state finances for more than a decade, and Corbett, a Republican, repeatedly has spoken of a desire to make changes to them.

The report says higher taxes “should be off the table,” but reductions in prospective benefits for current employees should be considered.

Case law interpreting the state constitution has prevented curtailing pension benefits for current or retired state employees and teachers, but the new report states, without elaboration, the state can change components of current employees’ prospective benefits “to conform with prior court determinations regarding deferred compensation.”

Budget office spokesman Jay Pagni said he could not provide examples of those “prior court determinations,” but said the administration was researching changes enacted in other states.

“We believe there is the ability that we can look at certain aspects of a current employee’s prospective deferred compensation, their retirement,” he said.

The head of Council 13 of the American Federation of State, County and Municipal Employees, which represents 45,000 state workers, said any move to reduce a current employee’s right to earn future pension credits would be challenged in court.

“I’m curious myself as far as what they’re looking to do, and I’m hoping before they start off on that path that there will be a meeting of the principals,” said Council 13’s David Fillman.

SERS press secretary Pam Hile said she was unsure what potential changes the administration has in mind. She said current retirees and others within the pension system should know that no changes have occurred so far.

“It’s hard to say what they are going to do,” Hile said. “I don’t know.”

A spokeswoman for PSERS, the teachers’ union, said they had no information about what was meant by the phrase “prior court determinations regarding deferred compensation.”

Growing pension costs could force spending cuts throughout the state budget, according to the report.