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San Jose Mayor Chuck Reed smiles during a campaign party in San Jose, Calif., Tuesday, June 5, 2012. As state and local governments across the country struggle with ballooning pension obligations, voters in two major California cities on Tuesday approved sweeping measures to curb retirement benefits for government workers. Reed, a Democrat, joined an 8-3 City Council majority to put San Jose Measure B on pension reform on the ballot.

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California pension cuts may have ripple effect

Decisive victories for ballot proposals cutting retirement benefits for government workers in two of the largest cities in the U.S. emboldened advocates seeking to curb pensions in state capitols and city halls across the nation. The voter responses in San Diego and San Jose were stinging setbacks for public employee unions, which also came up short on Republican Gov. Scott Walker's recall victory in Wisconsin.

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