Many experts say the proposed changes wouldn't come close to solving the hundreds of billions of dollars in unfunded liabilities facing California's pension systems.  A CalPERS estimate suggests the deal would reduce state and local government costs by $40 billion to $60 billion over the next 30 years.  On the other hand, public employee unions continue to slam the deal for unilaterally imposing harsher pension terms.

The agreement is drawing support, however, from the League of California Cities.  Here's the League's Dwight Stenbakken:

Stenbakken: "We don't think it's perfect. There's some other things we would have loved to have in the package.  But I think it's a step in the right direction."

He says the changes would give local governments some much-needed flexibility to work with their union employees to create the cost savings cities desperately need.