State employee pensions are NOT the problem...

Eric Alterman:

(S)tatistics demonstrate the speciousness of the conservative case for states facing budget crises to default on their public pension obligations. The Center on Budget and Policy Priorities released a report recently demonstrating that, in fact, they have “adequate tools and means to meet their obligations.” To the degree that some states appear to be in real trouble, explains a June report by two Federal Reserve Bank of San Francisco analysts, this is the result of a “profound macroeconomic shock” rather than pension obligations... Yet snowjobs like those promoted by Murdoch, Gingrich and New Jersey Governor Chris Christie are painting a bull’s-eye on the back of public unions.

Update: Mark Thoma has more on this at "Economist's View"