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 longterm 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.

Chapters:
[01:2503:39] Chapter 1: Revenue boom
[03:3906:07] Chapter 2: Pensions
[06:0708:45] Chapter 3: Emerging risks
[08:4511:25] Chapter 4: Stress Tests

Produced and Edited by: Carlos Waters
Supervising Producer: Lindsey Jacobson, Shawn Baldwin
Animation: Jason Reginato
Additional Footage: Getty Images
Additional Sources: Associated Press, Charles Schwab, Committee For Responsible Budgets, Congressional Budget Office, Equable, Federal Reserve, Illinois Comptroller, Maryland Dept. of Transportation, New Mexico State Legislature, National Association of State Budget Officers, National Council of State Legislatures, Reason Foundation, Rutgers University, The Pew Charitable Trusts, S&P Global, Tax Policy Center, Treasury Department, Truth in Accounting, U.S. Senate, WalletHub, Washington State Department of Retirement Systems

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Why 27 U.S. States Are Going Broke