So when the money isn't there to pay union wages and perks, what happens? Has anyone seriously thought about what would happen if, say, the state of California suddenly declared bankruptcy, and its assets were seized by the court? Everything screeches to a complete halt... and those union jobs? They're gone. Those union paychecks? They're gone too. Highway maintenance? Uh-uh. Snowplows in the mountains? Sorry, fend for yourselves until spring. Water delivery from the north part of the state to the south? Sayonara. State workers handle... used to handle that. Wildfires, floods, natural disasters... you're on your own, people. Schools? Close 'em down, people. No state, no teachers, no money. 20 million peeps will have to homeschool their kids. The dominoes continue to fall as the list goes on. Is this the worst-case scenario? Absolutely. But the worst-case scenario is not an impossible scenario.
I used to work for a municipality. People always complain about civil servents until suddenly they don't have access to all the services they provide, services that residents severely need. In order for public entities to remain solvent, they have to have ways to cut expenses to match flexible revenues. Huge, multi-year union contracts prevent entities from doing that. Unlike the federal government, public entities are required by law to balance their budgets. They cannot by law run a "dificit."
A private corporation goes bankrupt, a limited number of people are out of work. A state goes bankrupt, millions upon millions of people are going to be drastically and dangerously affected, and unemployment will probably soar to 30% or more. When you count all the jobs in the public service sector and jobs that are funded by the public service sector, half the state could eventually be out of work. That is why public entities cannot be allowed to go bankrupt, and why public sector unions should be abolished.