State Budget Negotiations Reportedly Hung Up on Pensions Issue
Supposedly, a “framework” for a state budget deal was worked out last week by the “Big-5” (governor + 4 legislative leaders). News reports suggest that public pensions remain a key issue (although the immediate effect of creating a two-tier pension system, etc., on the state budget for this fiscal year is small.) Democrats want the governor to use collective bargaining with state unions to cut a pension deal. The governor wants the legislature to impose a deal. Note that a budget could be passed that on paper assumes the governor bargains a deal with the unions. Whether the governor would…