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There are few easy solutions. Cities and states can either raise taxes, cut services orbecome more aggressive about reducing benefits to retirees. For many years governmentswere unwilling to take these steps because they weren’t politically palatable, although publicappetite to cut public-employee benefits is emerging, in states including Wisconsin. Manygovernments opted to change benefits for new employees, which in some cases didn’t fullyalleviate funding woes.In San Jose, Calif., voters approved cuts to police pensions in 2012 only to roll back thosechanges after hundreds of officers quit and the crime rate increased. The measures wererevised, with savings coming in part through changes to retiree health care.