Pensioners and investors in state bonds could lose out
Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.
Unlike cities, the states are barred from seeking protection in federal bankruptcy court. Any effort to change that status would have to clear high constitutional hurdles because the states are considered sovereign.
But proponents say some states are so burdened that the only feasible way out may be bankruptcy, giving Illinois, for example, the opportunity to do what General Motors did with the federal government’s aid.
Beyond their short-term budget gaps, some states have deep structural problems, like insolvent pension funds, that are diverting money from essential public services like education and health care.
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1 comment:
a few money saving tips:
1. kill the people on death row now!
2. reduce ALL government agencies by 50% regardless of branch or duties.
3. raise requirements for welfare, drug tests mandatory, and limit full benefits to 3 months then drop to half benefits for 3 months, then drop them.
4. pull out all troops, ambassadors, and any other government personnel AND AID from all foreign countries.
5. stop allowing stupid lawsuits (see texting mall fountain lady)
6. allow cops to shoot on sight.
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