Gov. Cuomo trimmed budget fat Wednesday by vetoing more than $642,000 in legislative pork.

Gov. Andrew M. Cuomo and legislative leaders eagerly celebrated passage of the spending plan, which slightly reduces over-all spending from the current year.

The number of public employees joining New York's major pension system this month has just about doubled over the same period in 2011. That suggests a last-minute rush by employees to secure their spots in the current pension plan before the new and less-generous plan, known as Tier VI, takes effect on Sunday.

Governor Andrew Cuomo and legislative leaders in New York say they are putting the finishing touches on a state budget of roughly $132.5 billion, with lawmakers set to beat their April 1 deadline for the second year in a row.

"Most people say, big deal, you're supposed to get it done on time, but it's actually a big deal in Albany," said Gov. Cuomo.

Gov. Andrew Cuomo and the New York Legislature are poised to pass a state budget on time for the second year in a row. Just seven spending plans were approved on time since 1975.

Gov. Cuomo said that he's hopeful for an on-time budget, but said he would not sign off on one that wasn't a "good budget."

Pension osts for local governmentPension costs for local governments and agencies in New York are expected to skyrocket 59 percent in 2013 compared to last year as officials warn that recent reforms will provide no immediate relief to the mounting expense.

One of the issues yet to be resolved is the establishment of a health care exchange for New York State.  Governor Andrew Cuomo has put the exchange set-up into his executive budget. But State Senate Majority Leader Dean Skelos indicated this week that it is not his top priority.

Signals indicate a package could be ready next week as crucial issues are decided.

The number of public employees joining New York's major pension system this month has just about doubled over the same period in 2011. That suggests a last-minute rush by employees to secure their spots in the current pension plan before the new and less-generous plan, known as Tier VI, takes effect on Sunday.

Pension osts for local governmentPension costs for local governments and agencies in New York are expected to skyrocket 59 percent in 2013 compared to last year as officials warn that recent reforms will provide no immediate relief to the mounting expense.

The governor and legislative leaders first allowed the public to see the details of the pension legislation at 3 a.m. Thursday. The Republican-controlled Senate approved the measure an hour later, despite the absence of most of the chamber's Democrats, who had walked out over redistricting.

The deal is said to include a scaled-back version of Cuomo's push for a 401(k)-style option that now would affect only new, non-union, "higher income" earners, like agency commissioners.  It leaves in place the 10-year period before a worker would be eligible for benefits. Cuomo wanted to bump it to 12 years.  The deal increases the current retirement age to 63, up from 62. And it would hike the 3% employee contribution rate to as much as 6% for new hires.

The Democratic governor is insisting the Legislature adopt a less expensive pension system for future public workers.  Yet the Senate Republican and the Assembly Democratic majorities presented 2012-13 budget proposals Monday without Cuomo's pension proposal, which is strongly opposed by public worker unions.

New York City Mayor Michael Bloomberg and a coalition of two dozen local leaders, who collectively represent 15 million residents, are pushing legislators to support a plan proposed by Governor Andrew Cuomo. The governor wants to raise the retirement age to 65 from 62 for most new workers and allow for a voluntary 401(k)-type retirement plan.

Governor's line in the sand gives lawmakers no way out in budget talks.

New York voters strongly favor reduced pension benefits for future public employees and solidly oppose pay raises for state politicians and appointees for the first time since 1999, according to a new poll.

Many state pension systems are in shambles, and states face the problem of being accountable for the promises made to their residents in the state's highest legal document and balancing their budget for the present and in the future.

Billions of dollars are at stake in Gov. Andrew Cuomo's plan to shift new public workers into 401(k)-like individual retirement plans.

This report analyzes the tax cap proposal in light of previous efforts to limit property taxes in New York and other states. Among the findings, New York's local property tax levels are exceptionally high by national standards and have grown by more than double the inflation rate over the past decade, justifying the governor's push to limit future growth.

Personal shopping and cleaning services for the disabled would be eliminated, weak hospitals could be merged and brand-name drugs would be limited under a series of budget-cutting proposals announced by the New York State Health Department.

The document explains why and how New York state developed such massive budget deficits and identifies programmatic changes to begin closing the gaps, including privatization and competitive contracting, cost reductions and tax policy goals to promote economic growth.

The number of public employees joining New York's major pension system this month has just about doubled over the same period in 2011. That suggests a last-minute rush by employees to secure their spots in the current pension plan before the new and less-generous plan, known as Tier VI, takes effect on Sunday.

Pension osts for local governmentPension costs for local governments and agencies in New York are expected to skyrocket 59 percent in 2013 compared to last year as officials warn that recent reforms will provide no immediate relief to the mounting expense.

The deal is said to include a scaled-back version of Cuomo's push for a 401(k)-style option that now would affect only new, non-union, "higher income" earners, like agency commissioners.  It leaves in place the 10-year period before a worker would be eligible for benefits. Cuomo wanted to bump it to 12 years.  The deal increases the current retirement age to 63, up from 62. And it would hike the 3% employee contribution rate to as much as 6% for new hires.

The governor and legislative leaders first allowed the public to see the details of the pension legislation at 3 a.m. Thursday. The Republican-controlled Senate approved the measure an hour later, despite the absence of most of the chamber's Democrats, who had walked out over redistricting.

The Democratic governor is insisting the Legislature adopt a less expensive pension system for future public workers.  Yet the Senate Republican and the Assembly Democratic majorities presented 2012-13 budget proposals Monday without Cuomo's pension proposal, which is strongly opposed by public worker unions.

New York City Mayor Michael Bloomberg and a coalition of two dozen local leaders, who collectively represent 15 million residents, are pushing legislators to support a plan proposed by Governor Andrew Cuomo. The governor wants to raise the retirement age to 65 from 62 for most new workers and allow for a voluntary 401(k)-type retirement plan.

Governor's line in the sand gives lawmakers no way out in budget talks.

New York voters strongly favor reduced pension benefits for future public employees and solidly oppose pay raises for state politicians and appointees for the first time since 1999, according to a new poll.

Many state pension systems are in shambles, and states face the problem of being accountable for the promises made to their residents in the state's highest legal document and balancing their budget for the present and in the future.

Billions of dollars are at stake in Gov. Andrew Cuomo's plan to shift new public workers into 401(k)-like individual retirement plans.

This all boils down to who gets to pick taxpayers' pockets first, public pensioners or municipal bond investors? More people are waking up to the hard reality that when it comes to state and local government, somebody has to lose money over the next few decades. The National Association of Bond Lawyers is worried enough about it to issue "Considerations" for advising clients who think they're getting safe investments.

Despite an organized campaign to stop public pension reform, reality is beginning to break through.  One recent report outlines a possible path to long-term solutions and another details the necessity of states and municipalities finding their own way because federal bailout is impossible.  And Chicago Mayor Rahm Emanuel released a plan that could have been based on both reports.

Hey, young public employees, what are you going to do when your pension checks bounce after you paid in for decades? That is what will happen in many - maybe all - states and municipalities sooner or later if they do not reform right now. If you want to see the future, just look at Illinois. One citizen there did, and came up with a real reform plan that might work.

Public employees should take their pension money now and run to avoid risk of getting reduced benefits - or nothing - in the future. It's the best deal for them and for taxpayers. A growing chorus of credible voices including the Government Accountability Office, a Federal Reserve bank and now the Harvard Kennedy School Mossavar-Rahmani Center for Business and Government confirm state and local government finances are "spiraling out of control" and even draconian reforms only make it "more likely" that future benefits will paid in full.

Hey, young public employees, what are you going to do when your pension checks bounce after you paid in for decades? That is what will happen in many - maybe all - states and municipalities sooner or later if they do not reform right now. If you want to see the future, just look at Illinois. One citizen there did, and came up with a real reform plan that might work.

This is what it sounds like when the Federal Reserve Bank screams: "Much has been written about the various headwinds restraining economic activity over the near term. However, our economy also has other headwinds to confront over the medium- to-longer-term. ... the finances of some state and local governments are also under stress and in need of serious adjustments."  - Federal Reserve Bank of Cleveland President Sandra Pianalto

As state lawmakers struggle to close budget gaps and reduce deficits, many are scrambling to find new sources of revenue, often in the form of new taxes. To bolster revenue, states like Texas and Illinois are honing in on a new type of tax, a "skin" tax, aimed at strip clubs in the state.

New York needs a pension system that is financially more transparent and sustainable. Ideally, New York would break entirely with the defined-benefit approach and move all government workers to a 401(k)-style defined-contribution system -- now the prevalent retirement model in the private sector. At the very least, real pension reform would require employees to share in the risk.

Frozen funding, mismanaged distributions, and states' fiscal uncertainty relating to disaster relief is increasing frustration over the failed disaster management practices of FEMA-the need for reform is clear.

New York and Rhode Island leaders are working to reduce the cost of state pensions.

The realities of public pension liabilities have finally dawned on legislators in statehouses from coast to coast. As huge pension debt looms on the horizon, both Democratic and Republican lawmakers are taking steps to reign in pension costs in their best attempt to keep the problem from growing.  Not every state is taking action, and those that are have caught on slowly.

While some states are attempting to reform lavish pension plans, others are  still playing games with state finances.

States take different measures to avoid layoffs and furloughs within the judiciary system. While Florida needed a lifesaver, New York took initiative to save jobs.

It's that time of year again; one by one, states are passing their budgets for the next fiscal year. Shortfalls still loom for some while others have used a variety of tools to balance their books. Some states have taxed, others have cut, and still others have just gotten creative with their accounting.

The recession continues to haunt state legislators as they attempt to balance growing demands for state services with stagnant revenues.

In all, the salaries and benefits of state employees add up to $18.5 billion, or a fifth of New York’s operating budget. Unless those costs are reined in, New York will find itself unable to provide even essential services.

New York State spent more than $20 billion on Medicaid this fiscal year — or nearly a quarter of the total operating budget. With the state confronting a projected $10 billion deficit for next year, Gov. Andrew Cuomo has little choice but to cut back the program.

Andrew Cuomo, the governor-elect of New York who will be sworn into office this Saturday, faces immediate challenges in the fiscally troubled state for which he is about to be responsible. New York has an $8.5 billion shortfall for Fiscal Year 2011, representing 16% of the total budget that was passed amidst political drama in the previous administration. What's more, the state has over $56 billion in unfunded retiree healthcare liabilities. Cuomo claims he's bringing serious reform across the board, but will he stand up under these enormous financial burdens?

Public sector compensation and retirement benefits have made headlines lately for their sheer size and weight in comparison to the private sector. The problem of unfunded liabilities is decades in the making, but the bills are starting to come due this legislative session. Budget leaders are learning that they won't have decades to undo this disaster.

Fiscal stress and strain continues in the fifty states this week as more legislators look for ways out of the black holes in which they find themselves. Solutions sought by states include delayed retirement, increased pension contributions, and furloughs.