Everyone should keep an eye on this, for this is the harbinger of total financial collapse.
Think of the states (or even the cities) as sub-corporations under USA Megacorp. USA Megacorps’ financial may look OK to investors, but as their subcorps keep incurring more and more unpayable debt, the Megacorp is going to slip in financial standing, having to pay higher rates to borrow, setting off a cascading collapse.
You would think the vendors would cut the brain dead idiots off. COD or pay your bill or go elsewhere. If I am a business and can’t get paid all the promises and IOU’s mean nothing to me.