[Post 952] Why 27 U.S. States Are Going Broke

Summary

27 state governments lack the necessary cash on hand to pay their bills, according to researchers. The debts largely relate to the public pension system, which provides lifetime benefits to state and local government employees. $800b in federal aid during the pandemic obfuscated the long-term challenges of states. As that extra aid expires, even economically powerful states have to tighten their budgets. That could mean more tax hikes or cuts to public services like education and transportation.