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If states reduced their unfunded liabilities, they could afford to invest more in infrastructure.

And if a frog had wings it wouldn't bump its ass on the ground...

The problem with our decaying infrastructure is elected officials being too greedy, cowardly and/or self-promoting to address the real cost of all the cool public infrastructure projects they are first in line to take credit for building. They are there to fund the initial project. They are at the ground-breakings and the ribbon-cuttings and any other events which glorify them and their "forward-thinking"; but once a given project is complete, they move on to the next "big-ticket" item.

Very few governments, local, state or federal, are willing to include recapitalization costs in their budgets. Very few of them engage in any form of planning for the future of their existing infrastructure.

There is always something "new" to build or expand, but working to make sure sufficient funds are budgeted/set-aside to properly operate, maintain and eventually refurbish/replace existing infrastructure is just not glamorous enough for them.

So, elected officials invariably find more visible and/or "pretty" things on which to spend taxpayer money. By the time they finally get around to grudgingly funding infrastructure renewal/replacement it is only because they have neglected it for so long that a true emergency has developed. Then they suddenly "realize" that they have set aside nothing to renew/replace these pieces of critical infrastructure. Suddenly, a tax increase is "necessary" and "inevitable".

This cycle is occurring every day, all over this country.

How do you address unfunded liabilities at the state and local level?

Should government pensions be outlawed at all levels in favor of 401k plans?