Here are highlights of Gov. Tom Corbett’s 2013-14 proposed budget for the year that starts July 1:

TAXESPhases in an increase on the wholesale tax that gas stations pay on gasoline, the Oil Company Franchise Tax, over five years by uncapping the average price used to calculate the tax. The increase would help finance a five-year, $5.4 billion transportation initiative for roads, bridges and mass transit and would be partially offset by a phased-in reduction in the liquid fuels tax from 12 cents per gallon to 10 cents per gallon over two years.Phases in, beginning in 2015, a reduction in the corporate net income tax rate from 9.99 percent to 6.99 percent by 2025. Also increases the maximum net operating loss deduction from $3 million to $4 million in 2014 and to $5 million in 2015.Continues the phase-out of the Capital Stock and Franchise Tax by reducing the rate from 1.89 mills to 0.89 mills this year and eliminating the tax altogether in 2014. The tax is levied on the supplies and goods job-creators need to make their products.

PENSIONSReduces future benefits for current state workers and school employees by reducing the multiplier used to calculate benefits, reducing annuity payments to employees who withdraw their contributions and capping pensions at the Social Security wage base.Requires that new hires be enrolled in a 401(a) defined-contribution retirement savings plan. They would be required to contribute at least 6.25 percent of their salary and the employer would make a 4 percent match.The increase in the employers’ (taxpayers’) share of funding the state’s two major pension funds would be limited to 2.25 percent, instead of 4.5 percent. The annual increase would be allowed to rise by no more than 0.5 percent until it reaches 4.5 percent or the annual required contribution rate.Maintains current benefits for retirees.

EDUCATIONIncreases funding for public schools by $90 million to nearly $5.5 billion.Maintains spending for higher education at this year’s $1.2 billion level.Finances a proposed Passport for Learning block grant program for public schools with $1 billion over four years from the sale of licenses under Corbett’s sweeping liquor-privatization initiative. Grant money could be used for kindergarten programs; customized learning plans; science and math programs and equipment in grades six through 12; or school safety.

JOBSConsolidates eight loan programs under the Pennsylvania Business Development Authority into a single pool totaling $1.1 billion to streamline the process for businesses seeking capital.Increases funding by $10 million for the PA First program, which helps businesses that plan to create jobs in Pennsylvania.

MISCELLANEOUSIncludes nearly $15 million for three new state police cadet classes that are expected to train 290 troopers, plus $6 million for 90 new civilian police dispatchers.Provides nearly $40 million to expand home- and community-based services for people with intellectual and physical disabilities.