Governors Reject Bankruptcy Idea For States

[seafan]

Source: National Journal

The nation’s governors closed the door Saturday on the idea that states should be allowed to voluntarily declare bankruptcy in order to deal with their dismal financial circumstances.

The National Governors Association is meeting in Washington at a time when states collectively face a $175 billion budget gap, and recently some national Republican leaders have floated the idea that states be allowed bankruptcy protection as a way to fix the problem.

“Not only do we not want (bankruptcy protection), we want to stop the discussion,’’ said the NGA’s chairwoman, Democratic Gov. Christine Gregoire. “We want the leaders of Congress to say it’s dead.’’ Some nationally influential Republicans, including former Majority Leader Newt Gingrich and former Florida governor Jeb Bush, argue that states should have the option of reorganizing their finances to reform bloated pension systems and get out from under costly labor contracts, and that bankruptcy would allow that kind of reorganization.

The debate reflects one of the biggest flashpoints at the gathering of the nation’s governors: How much should states target public employee unions in order to balance their budgets? The NGA aims to be a policy-driven sanctuary from partisanship but looming over this year’s meeting are politically explosive protests in Wisconsin and Ohio over proposals to strip unions of collective bargaining rights. It’s the first NGA gathering since the 2010 election swept a record-setting 29 new chief executives into office.

Read more: http://www.nationaljournal.com/politics/governors-reject-bankruptcy-idea-for-states-20110226

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To Jeb "The Micromanager" Bush along with co-conspirator Newt Gingrich, just go away.


And take your sweaty paws off of workers' rights in this country.

[Kingofalldems]

1. Another Newty idea down the drain