The problem with any of these union employees is that you can not get rid of them until they retire.
Then you have to still pay their pension. The state of IL can not declare bankruptcy.
I can see several states like IL going to junk bond status.
I would think we will see states and municipalities in IL and other states default on bonds.
“Then you have to still pay their pension. The state of IL can not declare bankruptcy.”
The problem here in IL is that all these pensions are guaranteed under the Illinois Constitution. They cannot be “diminished or impaired” by the State. Federal bankruptcy is the only way out for a municipality.
Chicago is pretty much at Junk status now. The State will not be far behind.
As I said earlier, when the wheels come off it’s going to be spectacular.
L
There is never a reason for a state to worry about money, sadly. For instance, there is always someone who owns property. Even if you walk away from your property, the state has a tried and true method to take it over and sell it off to someone, who now starts paying the taxes you chose not to.
All of your assets ultimately belong to the state in which you choose to live. However, you have the choice to defund your state of your assets by permanently living in another state.