- Mar 27, 2013
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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...