State Debt

Livingat45north

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Found this article a bit interesting, a listing of state debt per resident. This does not include personal debt, just debt and obligations (e.g., pensions) at the state level. Minnesota is 11th (on a scale where 1 is best), with a debt of about $200/resident. Alaska is in the best shape with a surplus of $74K per resident (lots of oil and mining money) and worst is New Jersey with an unfunded debt of $65K per resident. Is it legally possible for a state to declare bankruptcy and wipe out their pension requirements? If so, what happens to the pensioners, do they start getting paid in full by the federal gov't or are they treated like any person that has a pension with a private firm that goes bankrupt? If a state can not declare bankruptcy, what happens when they can no longer pay those bills (eventually folks are going to stop buying bonds issued by those states)? In any case, I'm glad I'm not living in NJ or IL...
 

Section2

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Those figures surely don’t include unfunded liabilities. The picture is much bleaker.

oh, and why on earth would they be paid by the federal government?
 

Ogee Oglethorpe

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I wouldn't be surprised to see more government agencies/entities declaring bankruptcy like I believe we've seen quite a bit in California if I'm not mistaken. There are TONS of it that are just simply not sustainable.

I have a number of retired NV employees that retired around 50 (a few as early as 45 or 46), started pulling down State pensions at that time of anywhere from $60-$120K per year, and working for me they make an additional $120-$150K+, working on government contracts on top of their State retirement. Gotta love it. The ultimate double dipping. That window will close before too long I would think but the time being, there are some folks making some serious jack.
 
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