Brown has strong support from labor unions that also were victorious Tuesday in fending off an initiative challenge to their political clout.

Harder swing to the right puts legislators on track for big spending cuts, maybe more tax cuts and other changes.

To set an example, Gov. Matt Mead plans to cut the budget for the governor's office by 10 percent.

The governor and lawmakers said higher benefits contributions were needed from workers to help keep the retirement and health care systems for teachers, police and firefighters, judges and other public workers from going bankrupt.

Illinois pension systems are in a financial mess, and some critics say legislators too often grant better benefits without worrying about the cost. The amendment was intended to rein in lawmakers.

State Budget Solutions recommends that state legislators take action in 2013 to resolve the serious state financial crises by changing their focus from inputs to outcomes by redesigning budgets from the ground up based on priorities and performance.

California voters approved Prop 30, a temporary tax increase that would raise income taxes on wealthy earners for seven years and hike the statewide sales tax by a quarter-cent on the dollar for four years, raising about $6 billion a year for the state budget. Get SBS's take here.

Republican Gov. Dennis Daugaard proposed the amendment earlier this year, saying current language implies the budget must be balanced but doesn't require it.

California voters defeated a measure that would have established a two-year budget cycle for the state and made a host of other changes to state and local budgeting, including giving the governor unilateral power to cut spending during fiscal crises.

Gov. Jerry Brown declared victory after his tax initiative seized a narrow lead Tuesday night, calling Proposition 30 a "unifying force" that countered the "Kool-Aid of the market ideologues."

A proposed amendment to the Illinois Constitution that would have made it more difficult to expand public employee retirement benefits has failed.

Will a full recovery from Sandy also deliver a crushing blow to New Jersey's state budget? Governor Chris Christie doesn't think so.

Governor Jay Nixon today signed an executive order to close state offices on Black Friday, Nov. 23, in part because state revenues have increased.

State Budget Director Adam Horst said sales tax revenue is basically on target for the current budget year and has grown 2.7 percent compared to the same four-month period last year.

U.S. public pensions ended the third quarter with a median gain of 4.67 percent as bond managers beat their benchmarks by buying riskier debt and fixed-income securities with longer maturities.

Gov. Bill Haslam told reporters Friday that he does not anticipate deep cuts to Tennessee's $31 billion budget during 2013-14, but he has asked department heads to identify potential cuts so the state can increase spending in other areas and prepare for rising health care costs.

State colleges and universities get their money from a variety of sources, and some argue that the state of Texas isn't legally obligated to pay more or less than it does.

The state Legislature rarely has been known for its independence, instead choosing often to take its cues from governors to whom lawmakers have willingly ceded power for years.

CalPERS' disputes with San Bernardino and Compton could have ramifications for other cities in financial distress and their creditors, according to a Moody's report.

"I am not complacent, but we have a very good chance -- that's all I'll say -- and we're going to keep on working," Brown said following the event. More campaigning is set for this weekend, mostly in Southern California.Pr