Thanks.

If you read news recently, you may know Republic congressmen/women are exploring the possibility to let state government bankrupt. At this moment, for state it is not possible to claim bankrupted.

Default of Muni-bond is possible. The issuers of Muni-bond include a lot of local governments, such as county and city. I am not sure whether they can claim bankrupted.

The state governments face more than just pension problem. That's why I rasied the question above. However, since the author is trying to give the information to Chinese people, I bet it will mislead, any way.