Will States Default on Their Debt?

"The problems in a California or Illinois or Michigan are so enormous that journalists have begun asking the question while some budget watchers have been debating default or bankruptcy. Nevertheless, when I asked our colleague Matthew Murray of the University of Tennessee, the lead author of our new paper, about state deficits, he said he found it highly unlikely that states would default at this time."

Will States Default on Their Debt? - Up Front Blog - Brookings Institution