The nation's financial downturn left many states in such a precarious position that they were forced this year to make tough decisions on expensive but long-untouchable public employee benefits.

New Jersey Gov. Chris Christie starting taking victory laps Friday, touting a landmark employee benefits deal that requires public workers to contribute significantly more for pension and health benefits, bringing them in line with private sector workers.

The move to stabilize New Jersey's underfunded pension and health care systems by requiring public workers to pay sharply more for the benefits while suspending bargaining over health care was fast-tracked through the Legislature Monday, after Democrats joined with Republicans to buck the powerful public employee unions.

Bucking the state's powerful public employee unions, the New Jersey Senate on Monday passed a bill requiring sharply higher contributions for health benefits and pensions from more than a half-million government workers, while suspending unions' ability to bargain over health care.

New Jersey's governor and Senate president reached a deal Wednesday that would make public employees pay more for pension and health benefits, but Assembly Democrats refused to go along.