States can’t print money. Has any state gone bankrupt? It would be awesome.
States can borrow. And Illinois has. But the federal government has been throwing money at states. Illinois can still sell bonds. But now the interest rates are killing them. I don’t think they can go bankrupt. But like NYC in the 70’s, or Detroit ten years ago, they can get restructured. There will be a lot of weeping and gnashing of teeth. But unless the feds eat Illinois’ debt, they will be taken over.