I think Illinois is in the worst shape of any state. New Jersey is a close second. If you live in Illinois, my advice is get out now. Sell your house. Sell your business or take another job. Do it before the excessive regulations and coming tidal wave of taxes crushes your business and causes a truly mass exodus. That will crush your home value too.
Illinois has chained itself to the Titanic after it hit the iceberg. Its going down. There is no way to avoid all the massive pension obligations to public sector labor unions. Those will never be cut until every last other resource has been exhausted trying to pay them. That means you. The politicians are coming directly for your wallet even more than they are now - and soon. Leave now with as much of your net worth still in your hands as you possibly can.
Refinance your house to 100% and walk away. Easier than selling. Selling in Illinois is getting hard.
NJ is sinking much faster. It’s sickening to live in a dead state and soon I will be gone like so many. The house will take a hit but the freedom of moving to a free state is worth it.
How I put it to friends there that remain, is that the state will muddle along and the checks will go out until the next "reset". The "reset" will happen during the next recession and the reason will be one that "nobody could have seen it coming".