States Drowning In Debt
It's not just Puerto Rico with debt problems. Other states are dealing with debt issues too. Some of them will surprise you.
California, Illinois, Connecticut and even New York are on the list. The main culprit is government worker pensions. Also known as unfunded pensions. The unions blame the politicians and the tax payer gets the bill.
These American states are drowning in ‘irretrievable’ debt
Connecticut may be the richest state in the country, on a per capita basis, but it's racked up a sizable debt worth more than $53 billion – and it could be taxpayers who are forced to bail out the Constitution State, according to the former governor of Indiana.
“Someone’s going to the barbershop,” Mitch Daniels, a Republican, said during an interview with FOX Business’ Stuart Varney on Thursday. “The first will be the taxpayers, already beleaguered in some of these states.”
And Connecticut isn’t the only state struggling with a debt crisis: California, Illinois, New Jersey and New York are unable to make pension payments to retired government workers.