Not sure this is the best way to view the issue. A state that is growing and has a growing large tax base is not in the same position as a state that is shrinking and has a shrinking population and business tax base. Illinois is not the same as Texas. Illinois can’t possibly pay its dept now or in the future no matter how austere their policies get.
And California may be in the most trouble of all. Their business tax base is vast. But it is leaving quickly to states like Texas. And with a 12% state income tax plus every other tax known to man, companies almost have to leave. And their employees are leaving before them. Their surplus will disappear if the stock market does not continually go up and if companies continue to move to Texas. California will find it impossible to lower their taxing or their spending down.
When Illinois fails it should be sold off to surrounding states that manage their money and cities better. Just let the State die...Indiana will take some... maybe even Florida will buy some of the farmland. Same with California - I'm sure Northern California is ready to get outta Dodge...
There's no reason to give the same folks in Illinois more money to throw away. ------------------------------------------------ With 278,475 regulatory restrictions and requirements — double the national average — Illinois has the third most heavily regulated environment in the country.
from link:
https://www.washingtonpost.com/opinions/2022/06/22/caterpillar-leaves-illinois/ Boeing Caterpillar Citadel