Iowa lawmakers have reached a tentative agreement on education spending and plan to introduce a bill that would represent the largest commercial property tax cut in state history.

The Vermont House and Senate have reached agreement on a roughly $5 billion state budget for next year, a deal that clears the path for the 2012 Legislature to adjourn this weekend.

The annual North Carolina state budget dance is about to begin in earnest now that legislators know how much money they'll have to spend. Republican legislators still have yet to hear formally from their partner - Democratic Gov. Beverly Perdue - about what she'd like.

Gov. Chris Gregoire's office has started contract negotiations with state employee unions. The result of the talks could tie the hands Washington's next governor for three years.

Gov. Tom Corbett's opinion on the state's public pension system is clear: "We have to fix it. It's that simple."

An Illinois Senate committee rejected a measure that would force local government to pick up the tab when it gives an ex-lawmaker a big paycheck to fatten his pension.

The S&P memo cautioned that the agency could revise its positive outlook on California's debt if the Legislature fails to pass a balanced budget by its June 15 deadline

A new wrinkle in Illinois' budget crisis unfolded Wednesday when Gov. Pat Quinn's administration said it has begun to delay payments to more than 40,000 child-care providers.

The Kansas Senate on Wednesday approved a $14.4 billion state budget for the next fiscal year after adding money for public schools and property tax relief.

May Pension Litigation Update

Efforts to move the state's budget along in the legislative process got delayed for a few hours Tuesday by the small renegade group of state Senators who have objected to the Senate's budget process.

Gov. Robert Bentley on Tuesday threatened to veto a state budget if it appropriates only $400 million to Medicaid, saying the funding cut could crash the state's entire health care system.

More than $500 million in cuts to education, local aid and other planned spending will go into effect July 1 if the legislature does not act.

The Arizona Legislature approved an $8.6 billion budget for fiscal 2012-13 on Tuesday, eliciting a mix of reactions.

The Tennessee Legislature has approved the state's more than $31 billion annual spending plan and sent it to Gov. Bill Haslam.

The National Conference of State Legislatures reports that since 2009, 43 states have boosted the slice of money workers must pay toward their own retirement, changed the age when a retiree can get benefits or modified their pension plans in other ways.

A new state budget report Monday showed a steep decline in tax revenues and a widening deficit now projected at $200 million for the current fiscal year that ends June 30.

State lawmakers expect to debate, vote and approve an $8.5 billion budget Tuesday in a sprint toward adjournment later this week.

The Federal Reserve Bank of Cleveland recently released three reports based on a year of research that show state and municipal finances are some of the "headwinds" that threaten economic recovery.

When state Rep. Marcus Oshiro and state Sen. David Ige agreed on an $11.2 billion state budget and a capital improvement project outlay, it ended the longest stalemate over the budget in recent memory.