They will just raise taxes or borrow the money to make up for it. Their bad investments are always responsibility of the tax payer.
Yep, if CALPERS/CALSTRS blows it and doesn’t have enough $$ to pay guaranteed/defined Calif. pensions then the general fund/taxpayers have to pick up the slack.
Debt policies are running out of room because of the nominal rate to the GDP.
I don’t think US treasuries becoming junk will be solved through taxes (Forget borrowing) while sustaining the current level of spending.