Possibly naive question for the tax experts. Especially @Peter1469
It's clear enough that states have a debt problem, but I don't think bailing them out whenever states go broke is the right solution. Nor should wealth be taken from better off parts of the country to pay for another part's lack of fiscal responsibility. At the same time, I don't think states should be left to fail. Would it be possible to reform the tax code so that federal income taxes from state workers got sent back to the worker's state?
That way more of what states spend on their employees stays in that particular state. Certainly not enough to dramatically change state budget deficits but I think if this is possible it could be one useful step without increasing federal dependency.