For Greece and Puerto Rico, avoiding sustainable solutions has lead to fiscal ruin. When will Illinois’ lawmakers stop whistling past the graveyard?

Taxpayers need protection when municipalities go bust.

Contrary to popular belief, government-worker pensions are not untouchable, at least according to the federal courts. The federal judge in charge of the bankruptcy proceedings of Stockton, California, has ruled that city-worker pension debt must be treated like any other form of debt and could be adjusted under federal bankruptcy law. The ruling is a...

The California city of Stockton’s bankruptcy case took an interesting turn yesterday. The big question surrounding the city’s bankruptcy has always been what might happen to city employee pensions. Most government advocates assumed that these pensions would remain untouched no matter what happened to Stockton’s finances. Now the federal judge in charge of the bankruptcy...

Illinois legislators and local officials could learn a thing or two from California cities that have buckled under the weight of too much debt. The first is if they don’t implement reforms early enough, bankruptcy for the city of Chicago and other municipalities may be unavoidable. In California, both Stockton and San Bernardino were forced...