Governor Paterson vetoed the bill that would have prevented public employee retiree benefits from being diminished as a result of collective bargaining agreements. Since pensions (with inflation adjustments) are absolutely guaranteed, that is the only way current and younger employees can make older generations of public employees, who traded rich benefits for themselves for lower pay and benefits for those coming after, give something back. The prohibition would have been in place for the period of time we are in a fiscal crisis.
Perhaps New York's "I've got mine jack, and I'll be getting more before you get anything" public employee unions might decide to make universal health care a bit more of a priority as a result. The veto was a part of a package of 49 bills, many of which are pension sweeteners as usual. The list is here. The Governor didn't give any reasons. If you need one, read this and this.