Allowing states to declare bankruptcy no panacea to state budget woes

Allowing states to declare bankruptcy no panacea to state budget woes

Senate Majority Leader Mitch McConnell of Ky. gives a thumbs up as he leaves the Senate chamber on Capitol Hill in Washington, Wednesday, March 25, 2020. (AP Photo/Andrew Harnik) Senate Majority Leader Mitch McConnell suggested last week that states be allowed to declare bankruptcy. This was his alternative to providing more money to states to handle the additional expenses states have incurred over the coronavirus. Castigating states with large unfunded pension obligations, McConnell said there’s “not going to be any desire on the Republican side to bail out state pensions by borrowing money from future generations.”

McConnell’s position is unwise. […]

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