The reason IL is in such tough shape is that their constitution prohibits reductions in public employee benefits. So, you cannot solve the problem by reducing outflow of $ - you have to raise taxes to match revenues to benefits. A responsible legislature would have done that year in and year out by funding the pension program. But Illinois made unrealistic assumptions about rate of return on pension trust funds, and well, they are now under 50% of what would be fully funded. Wisconsin - has in excess of 100% (or at least did until very recently.) And that means that Wisconsin taxpayers shouldered the burden of funding their plan properly.
I really expected this while Obama was in office, but probably a shrewd move to try and mask this in the emergency response. So, the taxpayers of Wisconsin, and all other responsible states, are to subsidize the irresponsible behavior of Illinois. I don’t think so.
Those constitutional provisions will be scrapped one way or another. The proceeds of the entire State economy cannot pay for the accumulated pension liabilities.
Public employees will be forced to settle for ten cents on the dollar - if they are lucky.
Of course the Illinois officials will plead for Federal bailouts, but nothing they may get will be sufficient. They will try raiding private retirement funds, raising sales taxes, and gas taxes and income taxes, and cannibalizing homeowners through insane property tax increases.
It will stop when there is violent opposition to local authorities as they try to enforce these taxes.
IL is already driving off people with high tax rates and a generally producer unfriendly environment. It went past the event horizon over a generation ago.
You can solve the problem by changing the constitution.