Complicating a complicated situation, the Illinois constitution forbids revoking pension benefits, but health care isn't included, supposedly, so the governor hopes to skirt the constitution by offering retirees a Hobson's choice - accept the new plan with the cuts or keep the old system but lose your health care.

Lawmakers, facing financial troubles in 2010, passed a biennial budget that defers this year's final check until the first day of the new fiscal year, helping balance the budget by transferring $72 million in personnel costs from one year to the next.

Gov. Martin O'Malley announced Friday that he will convene a special legislative session May 14 to complete work on a budget that left the state with $512 million in cuts.

Indiana's state tax collections are now slightly ahead of projections for the budget year after a big revenue jump during April.

More than half of U.S. states expect to end their budget years with a surplus of cash as a recovery in the economy buoyed tax collections.

The state House and Senate today gave final approval to an $11.2 billion state budget and a $3.2 billion capital improvement project outlay.

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.