JUNEAU, Alaska (AP) - Gov. Sarah Palin has introduced legislation to share costs with communities who have employees under the state's public employee retirement system.

Communities' currently split the costs with the state at widely different rates.

Palin is proposing leveling the rates, with the state paying 65 percent and municipalities 35 percent.

Municipalities and school districts are seeing huge spikes in their employer contributions as the state tries to whittle down a huge shortfall in its pension plans.

Kathie Wasserman, executive director of the Alaska Municipal League, says communities support the concept, but they prefer an 85-15 split.

The House meanwhile is proposing a 80-20 split.

Administration Commissioner Annette Kreitzer says the bill is a starting point for a discussion that includes help for school districts as well.

Bills have been filed already this session to address both structural problems in the retirement system as well as the shortfall, estimated at between $8.5 billion to $10 billion.

The problem is blamed on poor market conditions, soaring health costs, increased numbers of retirees and alleged incorrect information from the state's former actuarial.

(Copyright 2007 by The Associated Press. All Rights Reserved.)