This Analysis examines the state budget presented by Governor Tom Corbett for the 2011-12 Fiscal Year. The budget proposes deep cuts to education and higher education, as well as across-the-board cuts to most services and departments. At $27.3 billion, the budget is 3.1%, or $866 million, less than the available 2010-11 budget. This budget reduces spending to below the levels of three years ago.