"For the year ending in June 2009, the period corresponding to most states’ fiscal years, total state tax collections declined by $63 billion or 8.2% from the previous year. That loss is also a record, and is roughly twice the amount states gained during the year in fiscal relief from the federal stimulus package."
Please read this article and study the charts, which show the plunging source of revenue used to repay muni debt: LINK
To be sure, it is likely that the Fed/Treasury will ultimately be forced to print even more money in order to bail out our municipalities. But in between, I guarantee you that your broker/advisor will be calling you often, as muni prices tank, to sell you more "great value" paper. And at the end of the day, even with a bailout, you'll be left with nothing but paper that has even less value than it does now.