[scrabblehack]

Why is the Fed trying to solve the problem? Shouldn’t it be the state legislature that does it?
Although what happens if the state declares bankruptcy?

[ConservativeMind]

The FED has no authority on this—it was only looking at a bad problem and it had a possible solution. Unfortunately, the problem fixes it by taking the value out of people’s property and by taking future income. When a property tax hike passes, the value of everyone’s property immediately goes down by a proportion of the long-term added cost to maintain it.

States can’t declare bankruptcy, but they can default. In Illinois’ situation, it wouldn’t surprise me to find a judge overrules that action. They do that, there.