My muni bonds are in states that have a balanced budget requirement in their constitution. Not as risky I hope.
No need to worry.
Before any state would default on those (same as Federal Treasury Bonds), they will do anything else, borrow more money, raise sales taxes, cut state jobs and lower their wages, raise all State services (Tuitions, costs of all vehicle services, registration, driver's licence), stop state infrastructure and road maintanence, etc.
Higher cigarette/alcohol, gas, taxes. Basically, anything that helps to manage the debt.
Otherwise, a credit default would majorly effect their credit rating, interest on debt repayment and new debts increases.
Look out what California is up to these , and in the future days, weeks, and years.
Also going to be very interessting to see how generation "Y" and "Z" will make-out with all the debt generation "X" left behind.
(if we are still around).