Alan Fram
AP/Yahoo News
WASHINGTON – The new Republican-led House is showing no appetite for making federal taxpayers help state and local governments cope with widespread budget problems. Even some Democrats are wary, underscoring the impact of Washington’s crushing budget deficits.
“The era of the bailout is over,” Rep. Patrick McHenry, R-N.C., told a House hearing on the debt problems facing scores of states and municipalities around the country.
At the same hearing, Rep. Mike Quigley, D-Ill., said states need to erase their deficits and face up to their long-term obligations such as pensions for government workers on their own. He also criticized a proposal from some conservatives that Congress pass a law allowing states to reorganize their debts by declaring bankruptcy, an idea that opponents say would send state borrowing costs soaring.
“I don’t think either one of those options can work or are optimal,” Quigley said.
Be the first to comment on "Lawmakers oppose federal bailout for states"