Scaling back pensions

As state and local governments fight off potential bankruptcy, some officials are taking a new look at scaling back billions of dollars in pension benefits for public employees.Troy Anderson in the Daily News.

The issue has daunted government officials in California for years, as the state's powerful public unions have consistently quashed efforts at major reform.

But with the state facing its worst budget crisis in decades, politicians from gubernatorial candidates down to county and city officials are saying pension reform may be one of the most effective ways to avoid drastic losses in government service and employee layoffs.