Cutting corners: Governors look to state funds to relieve shrinking budgets; Officials in California, Florida, Kentucky, Vermont areseeking a total of $3 billion to ease fiscal crunches.(State pension contributions reduced)(Government Activity)(Statistical Data Included)

Pensions & Investments, January, 2002 by Chernoff, Joel

Facing tough times, governors in four states hope to save more than $3 billion by cutting state pension contributions for the coming fiscal year. While many governors have yet to present their budget proposals, early signs are there will be a bumper crop of proposals that pare state contributions to public pension funds.

Those under consideration for the fiscal year beginning July 1, 2002, include: * California Gov. Gray Davis proposed deferring $2 billion in contributions to CalPERS and CalSTRS to help plug a $12.5 billion budget deficit, although the delay in the CalPERS contribution already has been challenged in court by two employee unions. Under a deal reached last December with the $147 billion California Public Employees' Retirement System,...

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