The subject is fascinating, as solutions are so open ended.
Though the thread points to Illinois, the problem is nationwide. A search for
"Can a state declare bankruptcy", brings up many articles.
Here's a relatively recent article that widens the subject to include local as well as state problems. Much food for thought, and a look ahead to the longer term effects on all stages of government.
https://www.investors.com/politics/editorials/bankrupt-public-employee-pensions-the-next-big-financial-crisis/
Possibly a consideration for younger FIRE members when choosing future moves... not only for themselves, but for their families. Consider future tax considerations and level of services to be provided by local and state governments. Not a "this year/next year" question, but for a 20 to 40 year retirement.
A follow up, on an included link to Pew Charitable Trusts is here:
https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2018/04/the-state-pension-funding-gap-2016
All above and beyond what we want to know, but for me, one more reason why I'm glad to be old.
Though the thread points to Illinois, the problem is nationwide. A search for
"Can a state declare bankruptcy", brings up many articles.
Here's a relatively recent article that widens the subject to include local as well as state problems. Much food for thought, and a look ahead to the longer term effects on all stages of government.
https://www.investors.com/politics/editorials/bankrupt-public-employee-pensions-the-next-big-financial-crisis/
Possibly a consideration for younger FIRE members when choosing future moves... not only for themselves, but for their families. Consider future tax considerations and level of services to be provided by local and state governments. Not a "this year/next year" question, but for a 20 to 40 year retirement.
A follow up, on an included link to Pew Charitable Trusts is here:
https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2018/04/the-state-pension-funding-gap-2016
All above and beyond what we want to know, but for me, one more reason why I'm glad to be old.
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