Before the President took office, fiscal conditions had deteriorated to the point that what was a projected surplus in 2012 was now a deficit.

State revenues have rebounded, and there was no municipal bond default crisis. But given the furor over public pensions and labor compensation more generally in 2011, the coming year could be one of conflict in state capitols and city halls.

Colton Harris-Moore, the youthful thief who rocketed to international notoriety as the 'Barefoot Bandit', was sentenced to more than seven years after pleading guilty to dozens of charges, including burglary and identity theft, stemming from his crime spree.

AP - The Senate passed legislation Saturday extending a Social Security payroll tax cut and jobless benefits for just two months, handing President Barack Obama a partial victory while setting the stage for another fight in February.

AP - Flash floods devastated a southern Philippines region unaccustomed to serious storms, killing more than 400 people while they slept, rousting hundreds of others to their rooftops and turning two coastal cities into muddy, debris-filled waterways that were strewn Saturday with overturned vehicles and toppled trees.

AP - Newt Gingrich acknowledged Saturday that his rivals' attacks have taken their toll on his presidential campaign as he's zoomed to be Mitt Romney's chief challenger. Romney predicted that conservative voters will reject Gingrich as they learn more about the former House speaker's lengthy Washington record.