The looming debt crisis for states
Long-term debt obligations. Bond interest rates. Pension liabilities. These words may make your eyes glaze over, but it might be time to sit up at attention. State governors from across the country met in Boston last weekend at the National Governors Association meeting, and their fiscal woes were at the top of the agenda.
Bruising budget battles in individual states have gotten most of the headlines, but as WNYC’s Bob Hennelly explains, there’s a deeper problem looming. Lawmakers have relied on borrowing to patch together budget fixes year after year, and the growing hole is starting to worry investors. That could ultimately mean big changes to what states can afford.
In Harrisburg, Pa., City Controller Dan Miller says he would prefer filing for bankruptcy before turning to Act 47. We talk with Miller about struggling cities in Pennyslvania and their plans to avoid a deepening financial crisis.
The story you just read is available to read for free because thousands of listeners and readers like you generously support our nonprofit newsroom. Every day, the reporters and producers at The World are hard at work bringing you human-centered news from across the globe. But we can’t do it without you: We need your support to ensure we can continue this work for another year.
When you make a gift of $10 or more a month, we’ll invite you to a virtual behind-the-scenes tour of our newsroom to thank you for being with The World.