When States Go Broke: The Origins, Context, and Solutions for the American States in Fiscal Crisis

When States Go Broke collects insights and analysis from leading academics and practitioners that discuss the ongoing fiscal crisis among the American states. No one disagrees with the idea that the states face enormous political and fiscal challenges. There is, however, little consensus on how to fix the perennial problems associated with these challenges. This volume fills an important gap in the dialogue by offering an academic analysis of the many issues broached by these debates. Leading scholars in bankruptcy, constitutional law, labor law, history, political science and economics have individually contributed their assessments of the origins, context and potential solutions for the states in crisis. It presents readers - academics, policy makers and concerned citizens alike - with the resources to begin and continue that important, solution-oriented conversation.

Part I. The Problem: The States in Fiscal Crisis: 1. Fiscal constitutions and fiscal crises: a history Isabel Rodriguez-Tejedo and John Wallis; 2. Obligations without the power to fund them: the origins, consequences, and possible solution to the fiscal crisis of the states Damon Silvers; 3. Public pension pressures in the United States Olivia Mitchell; 4. Structural challenges in state budgeting Josh Barro; Part II. The Legal and Political Context of Public Debt: 5. What states can learn from municipal insolvency Clayton Gillette; 6. Market discipline and US federalism Jonathan Rodden; 7. American states and sovereign debt restructuring: lessons and cautionary tales Adam Feibelman; Part III. Evaluating Solutions: 8. State bankruptcy from the ground up David Skeel; 9. Fiscal federalism and the limits of bankruptcy Adam Levitin; 10. Extending bankruptcy law to states: is it constitutional? Michael McConnell; 11. Bankruptcy for the states and by the states George Triantis; 12. Labor and the states' fiscal problems: not the problem but perhaps part of the solution Catherine Fisk and Brian Olney.