The big push to federalize state debt is coming.
It’s why blue states don’t care how much debt they pile up.
Can this be stopped?
It can only be stopped by making the Unions that negotiated these contracts responsible for the debt
IF they have to increase union dues to pay that then tough luck.
If the unions can’t pay the bills declare them insolvent and all current contracts null and void.
I live in Oklahoma, a poor state by any measure. However, our State pension fund is fully funded. Our benefits are not very generous, but they are secure. (I’m surprised it wasn’t listed as one of the top states, but perhaps the ones listed are even better.)
I’m not interested in bailing out California, New York, or Illinois (Chicago!).
That’s why Newsom promised to provide full medical benefits for illegal aliens. He knows DC will bail California out.
It will have to be stopped. The federal gov’t will owe so much that they can’t even meet the interest on the debt. So no help for states there. States will have to renege on their contracts. Cap benefits, means test them, whatever it takes. It’ll happen sooner or later.
I think the number stated for CA was low, probably by an order of magnitude.