In lieu of defined benefits, some states and localities are mulling a shift to 401(k)-style pension plans, reports Jeannette Neumann for The Wall Street Journal:

Republicans have taken the lead in campaigns to make the switch. In February, Florida Gov. Rick Scott called for a shift to 401(k)-type plans when he proposed his budget. Former two-term Minnesota Gov. Tim Pawlenty called for a shift before stepping down in January. Nevada Gov. Brian Sandoval also proposed a switch in his January State of the State address.

State governors are practically begging the federal government for permission to cut hundreds of thousands from their Medicaid rolls. Why? Thanks to the recession, declining revenues, and the rising price of health care, state governments are increasingly unable to bear the burden of Medicaid costs. The Wall Street Journal explains:

About eight million Americans joined the Medicaid rolls between 2007 and 2010, many because they lost jobs. The federal government picks up 57% of states' Medicaid tab, on average. But in July, $26 billion in additional federal Medicaid funding will expire, leaving states to plug a big budget hole.