(Bloomberg) -- To ease Pennsylvania’s pension obligation, Governor Tom Wolf isn’t targeting public workers, the focus in neighboring New Jersey and around the country. He’s eyeing payments to Wall Street.

The first-term Democrat is calling for Pennsylvania’s two pension systems to reduce investment-manager fees that are higher than the average U.S. public plan. He’s also counting on Wall Street banks to market bonds the state would use to bolster one of the funds.

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As retirement costs consume a growing share of municipal budgets, pension boards are scrutinizing payments to money managers. California Public Employees’ Retirement System plans to liquidate its hedge-fund program, while Pennsylvania’s Montgomery County moved most of its holdings to cheaper, passively managed funds, which track indexes. Wolf wants to adopt lower-cost approaches that may save $200 million annually.