State Worker Pay Crippling State Budgets

We've been reporting on the outrage over the public salaries in Bell, California, but it's not just California that we need to worry about.

New York Republican Gubernatorial Candidate Rick Lazio says that cutting public workers' pay will help get state budgets in order.

This morning on Varney & Co. Lazio told Stuart that New York State needs to drive down costs and promote private-sector jobs.

"We've lost more people to other states than any other state in the country for the last ten years," said Lazio.

Among the fixes Lazio proposed to cut costs are reducing headcount among New York state government workers, reforming pensions and putting new employees in a 401(k) contribution plan.

"We're going to drive down these hundred thousand dollar salaries. When you go into public service. Emphasis on service," Lazio said.