Updates this week:

Moody's revised new approach to adjusting reported state and local government pension data. "Based on its adjustments, Moody's estimates that in fiscal 2011 total state pension liability would be $1.91 trillion compared to the $1.45 trillion reported by states. Moody's contends that the adjustments will have no immediate impact on state ratings and would affect less than 2 percent of local government general obligations in the form of downgrades." Segal

Money to burn; The muddle-headed world of American public-pension accounting. "American public-sector schemes discount their liabilities by the expected return on their assets. The riskier the asset mix, the higher the assumed return-and the lower the bill appears to be." Economist

ARIZONA: Public safety fund nearly $4.3 billion short despite $300 million a year from taxpayers. Contributions have increased 500 percent in the past ten years. Arizona Republic

HAWAII: State's unfunded liabilities loom large. Watchdog.org

ILLINOIS: Senate passes union backed pension reform bill which"would only shave the unfunded liability by as much as $15.7 billion and bring the system to a 90 percent funded level in 30 years." The House bill "calls for unilateral changes in pension benefits that are expected to cut $30 billion from the liability and uses savings over time to fully fund the system by 2044." Reuters

KENTUCKY: The only hope for Kentucky's multi-billion-dollar pension deficit is a federal bailout (op-ed)."No matter how much you punish future faceless employees - make them work to 95, give them pitiful 401(k)'s - it does absolutely nothing for the current pension and retiree health liability. This liability cannot be wished away because the vast majority of it - 90 percent or so - has already been earned by retirees and long term employees." Insider Louisville

MINNESOTA: House passes pension bill that bails out Duluth and Saint Paul teachers funds; Gives "a public pension to private sector union negotiators who collectively bargain against the state for MAPE"; and gives "public unions access to retirees via ‘blind mailings'so the unions can solicit union dues from retirees." American Experiment

NORTH CAROLINA: Senate OKs hike in alternative investments for state pension fund. State Budget Solutions

PENNSYLVANIA: Major pension reform unveiled on May 7. "The new bills, introduced by Sen. Mike Brubaker and Rep. Chris Ross would create a defined-contribution plan for new state and school employees, and reduce future pension benefits for new employees." Commonwealth Foundation

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