Post by the Scribe on Apr 23, 2020 11:03:08 GMT
Gov. Murphy Rips Senate Majority Leader Mitch McConnell's Comments On Allowing States To Go Bankrupt
NJ Gov. Murphy: McConnell ‘Utterly Irresponsible’ To Suggest States Go Bankrupt | NBC News NOW
Mitch McConnell tells states to go BANKRUPT rather than ask for federal bailouts as tax revenues plunge and says he will REFUSE to give cash for failing pension funds
www.dailymail.co.uk/news/article-8246925/Mitch-McConnell-tells-states-BANKRUPT-ask-federal-bailouts.html
Mitch McConnell tells states to go BANKRUPT rather than ask for federal bailouts as tax revenues plunge and says he will REFUSE to give cash for failing pension funds
Senate Majority Leader Mitch McConnell said Wednesday he'd rather states declare bankruptcy than request even more bailouts from federal government
'My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them no,' McConnell said
McConnell said he would be willing to allow states to declare bankruptcy in this unprecedented time, although the measure is not usually permitted
He asserted he would make sure if money went to state and local governments it wouldn't be used for past economic problems – like failing pensions
The $2.2 trillion CARES Act passed last month included billions for state and local governments, but Democrats say they need more in the next relief bill
By KATELYN CARALLE, U.S. POLITICAL REPORTER FOR DAILYMAIL.COM
PUBLISHED: 17:02 EDT, 22 April 2020 | UPDATED: 22:01 EDT, 22 April 2020
Mitch McConnell said Wednesday that he is OK with states going bankrupt instead of increasing federal bailouts even further – as Democrats demand more money for state and local governments be included in the next coronavirus relief bill.
'My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them now so they don't have to do that,' McConnell lamented.
'That's not something I'm going to be in favor of,' he continued in an interview with conservative radio talk show host Hugh Hewitt Wednesday.
'I would certainly be in favor of allowing states to use the bankruptcy route,' the Kentucky Republican senator said. 'It saves some cities. And there's no good reason for it not to be available.'
While cities are able to file for bankruptcy should they run out of money, bankruptcy law doesn't allow states to do the same. Instead, if a state can't pay its debts it cuts funding to services and pension plans when legal.
But McConnell said he is willing to give states the option to file for bankruptcy in this unprecedented time.
Senate Majority Leader Mitch McConnell said Wednesday he'd rather states declare bankruptcy than request even more bailouts from federal government. 'My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them no,' McConnell asserted of states' preferences
Senate Majority Leader Mitch McConnell said Wednesday he'd rather states declare bankruptcy than request even more bailouts from federal government. 'My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them no,' McConnell asserted of states' preferences
He also insisted, however, that he didn't want to send money to states just to have them used the money to bail themselves out of preexisting issues, like a pileup of pension debts.
'You know, we'll certainly insist that anything we'd borrow to send down to the states is not spent on solving problems that they created for themselves over the years with their pension programs,' McConnell told Hewitt.
'There's not going to be any desire on the Republican side to bail out state pensions by borrowing money from future generations,' he continued.
The Senate Majority Leader said he knows that states' would rather have money given to them by the federal government in another large-scale coronavirus stimulus package.
The $2.2 trillion CARES Act was signed by Donald Trump at the end of March and included $150 billion specifically for state and local governments, who believe they will see massive holes in their budgets due to the economic impact of the coronavirus.
That was the third package passed in Congress to provide coronavirus relief.
The fourth, an interim emergency package, is making its way to the House and expected to be voted on there Thursday after the Senate approved the measure Tuesday evening.
The interim legislation, however, did not allocate any of the $484 billion to state or local governments – despite Democrats' push for the measure to be included.
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Democrats say its top priority for the next coronavirus bill, which they claim could be as massive as the CARES Act.
Trump and Treasury Secretary Steven Mnuchin both have indicated they are open to including new funding for governments across the country in whatever Congress passes next, as well as money for infrastructure, a payroll tax cut and incentives for restaurants, entertainment venues and sporting events.
McConnell, however, said after the bill passed Tuesday evening that he wasn't so keen on passing another massive stimulus bill – and wasn't even up to discussions until the Senate reconvenes May 4.
'We need to see how things are working, see what needs to be corrected, and I do think that the next time we pass a coronavirus rescue bill we need to have everyone here and everyone engaged,' McConnell said in an interview after the Senate action.
