Governor looks to cut pensions

SACRAMENTO -- California's rapid economic decline has prompted Gov. Arnold Schwarzenegger to propose what once was unthinkable - rolling back generous pensions in a state heavily influenced by public employee unions. AP in the Daily News.

The Republican governor said he's motivated by the need to save money. California has at least $63 billion in unfunded pension liabilities, an amount equal to roughly two-thirds of all annual general fund spending.

The concern is shared across the country, as local and state governments wrestle with hundreds of billions of dollars in unfunded public employee pension and retiree health care costs.