Even though the housing bubble burst nearly five years ago, local governments are only now beginning to feel its repercussions with significantly lower tax revenues. Many municipalities across the country have chosen to bridge this gap by cutting services, specifically in police departments. In 2011, there were fewer cops on patrol than there have been in 25 years. This precipitous drop coincided with a 13 percent increase in the number of officers killed in the line of duty.

In a late night press conference Sunday, Mayor Michael Bloomberg announced New York City police arrested Jose Pimentel, a 27-year-old American citizen, for criminal possession of a weapon as a crime of terrorism, conspiracy and soliciting support for an act of terrorism. Motivated in part by continued U.S. presence in Afghanistan and Iraq as well as the death of Yemeni cleric Anwar Awlaki, police arrested Pimentel as he was allegedly building a bomb. Government workers, returning military personnel, and elected officials were among the targets of his intended attacks, according to authorities.

They may have lost their home in Zuccotti Park, but Occupy Wall Street made its presence felt in Lower Manhattan on Thursday. Nearly 300 people were arrested as Occupy Wall Street protesters marked the movement's two month anniversary with a "Day of Action." Demonstrators attempted to delay the opening of the New York Stock Exchange. They later held demonstrations on New York City's subway system before gathering for a march across the Brooklyn Bridge. And it wasn't just New York. Demonstrations were held across the country as the movement plans its next moves. 

In spite of a judge's ruling banning their tents and sleeping bags, several hundred Occupy Wall Street demonstrators returned to Zuccotti Park Tuesday night, after being removed by New York City police officers in a pre-dawn raid. After a day of legal wrangling, a state Supreme Court judge told protesters the city's concerns over health and safety justified banning overnight camping. First Amendment battles between city governments and protesters are taking place in courtrooms around the country — and sometimes, on the ground between police and protesters as well.

New Jersey Governor Chris Christie has said for months he will not run for president in 2012. But some Republicans have made it clear they would support his bid. As Christie continues to air ads that attempt to boost his approval ratings, with messages like "the model for the way forward," there is speculation that Christie may change his mind. Many eyes will be upon him tonight, as he makes a speech at the Ronald Reagan Presidential Library, and continues his three-state tour of Missouri, Colorado, and California, to raise funds for his party.

Among the multitude of serious issues facing this week's meeting of the United Nations General Assembly and Security Council, none has been the focus of as much attention as the Palestinian bid for statehood. The Palestinians will ask for UN membership, something the General Assembly anticipated in Resolution 181 in 1947, which partitioned Palestine into Jewish and Arab states. Many groups are protesting outside the UN headquarters in New York in advance of the application.

Within a week, the northeastern United States was hit by both an earthquake and hurricane. Following Hurricane Irene, four million homes and businesses lost electricity. According to experts like Dan Genest of Dominion Virginia Power, turning the lights back on will be no easy task. He told the AP that "one broken pole can take six to seven hours to repair."

The repercussions from the News of the World hacking scandal are slowly spreading across the Atlantic to American shores. Yesterday, the FBI opened an investigation into whether News Corp. employees tried to hack into phones belonging to 9/11 victims and their family members. They began the investigation after Republican Rep. Peter King, chairman of the Homeland Security Committee, made a call for the probe. In related news, Rebekah Brooks, the embattled chief executive of News International, News Corporation's British newspaper subsidiary, has agreed to step down following weeks of political and public pressure.

When Republican Wisconsin Gov. Scott Walker threatened the collective bargaining rights of Wisconsin’s public sector employees earlier this year, large scale protests assembled almost overnight as the eyes of the world descended on the Badger State. It was déjà vu in the Garden State last week, when the New Jersey State Senate approved a bill which would radically change the health care, pensions and bargaining rights of over 500,000 public sector employees. Just a decade ago, a move against pensions would be political suicide. So why are voters and lawmakers changing their state budget tactics now?

Two men have been caught conspiring to bomb synagogues in Manhattan in an undercover sting. The New York Police Department, who led the operation, say Ahmed Ferhani and Mohamed Mamdouh purchased weapons and an inert hand grenade from undercover officers, after saying that they were planning a terror attack. There is no indication the two are affiliated with a terrorist organization. Joining The Takeaway is Robert Hennelly, senior reporter for our flagship station, WNYC.

New Jersey Republican Governor Chris Christie's mantra in every national interview is that he is not running for President in 2012. But that hasn't stopped Republicans from asking, or voters from noticing. In a recent Quinnipiac University poll, respondents ranked Christie number three, just below first lady Michelle Obama and former President Bill Clinton (and one step above President Barack Obama) when asked to rate how they feel about public leaders. Christie is, in a word, a "hot" political commodity. But polls also showed Christie has issues with name recognition: 55 percent of respondents said they didn't know him well enough to make a decision.

Across the country, states' and local governments have been getting to the difficult work of balancing their bottom lines. In New Jersey, Republican Governor Chris Christie proposed a $29.4 billion budget which, he argues, reduces state spening by 2.6 percent for the 2012 fiscal year. The governor went on to describe a "new normal" of practical taxing and thrifty spending for his state, which is currently burdened by an $11 billion deficit. The governor's new normal includes a 15 percent cut to the Dept. of Health and Senior Services, state-wide benefit reform that would increase the amount state employees pay for their health insurance and increase retirement contributions from 8 percent to 30 percent, and a $2.5 billion tax cut to businesses. It wasn't all about cuts though; Gov. Christie increased school aid by $250 million, and gave $50 million to charter schools.

911 Emergency call systems across the country are in dire need upgrading to be compatible with satellite and cell phone technology. But for years, New York, along with nine other states, has been diverting hundreds of millions of dollars intended for improving 911 Emergency call systems to its general fund in an attemt to help balance the budget.

There's hope that the U.S. can pull out of this economic slump it's in, but there's a potential disaster looming for states that could derail any economic recovery. Meredith Whitney, a financial analyst famed for predicting Citigroup's major debt fallout, made a new dire prediction.  She believes up to 100 U.S. cities could default on their municipal bonds. 

In the discussion of our nation’s growing debt, there’s an issue that may be going largely unreported in the wash of discussion of the federal deficit. All across the country, smaller budgets — county, municipal and state — struggle to pay for underfunded civic services. Is it possible that the services we’ve come to depend on since the New Deal are, in fact, acting as an “architecture of debt?”

Newark Public Schools, which have been rated the worst in the country, have been given an infusion of $100 million from Facebook CEO Mark Zuckerberg.  The gift is a bonanza, but it is also highlights a school system in dire need. 

In the months after 9/11, New York Police Commissioner Ray Kelly reached out to the city's Muslim population. WNYC reporter Bob Hennelly explains how that strategy has worked and what those relationships have meant during the current controversy surrounding the proposed Islamic cultural center and mosque near Ground Zero.

Long-term debt obligations. Bond interest rates. Pension liabilities. These words may make your eyes glaze over, but it might be time to sit up at attention. State governors from across the country met in Boston last weekend at the National Governors Association meeting, and their fiscal woes were at the top of the agenda.

Two American citizens were arrested yesterday at New York's JFK airport. The young men from New Jersey, both in their 20s, had been under surveillance since 2006. Law enforcement laid low, gathered evidence and waited until this weekend when the two men were trying to board separate flights to Egypt, and then to Somalia where they were allegedly planning to join al-Shabab, a terrorist group allied with al-Qaida.

While we're all celebrating the capture of the alleged would-be Times Square bomber, there's story of another bomber that has been lost in the mix. This bomber successfully detonated a bomber in Times Square, in front of an army recruiting station back in 2008. He is also suspected of setting off explosives in front of the U.K. and Mexican Consulates in New York City. Why has this man not been caught? WNYC's Bob Hennelly has been following this story and knows the answer.