Hmmm, well then it is plan B, No Legislative Body can be bound by the acts of a previous legislative body. VOID ALL CONTRACTS AND AGREEMENTS. Game over. For any Contract entered into by a Legislative body can be nullified by the next legislative body, and with the blessing of the Supreme Court.
Short of a federal bail-out, that is the most likely outcome.
The questions are: Which party is in power at the time? And will they have the courage to do what they must?
The vision of a Democrat governor having to tell the union bosses "TS" would be priceless.
Read that on the internet, did you?
There is a world of difference between saying that one session of the legislature cannot bind a subsequent one, and saying that the State cannot enter into a binding contract. The current session of the legislature may vote to sell bonds, and it is true that it cannot "force" a subsequent session of the legislature to appropriate money to pay those bonds. But it does not follow that it is a not default if the bonds are not paid. It most assuredly is.