Sunday, February 27, 2011

Bipartisan, National Governors Association: "No ShutDown, No Cuts, No Bankruptcy"

Well, it looks as though the states themselves are going to fight Newt's suggestion that state bankruptcy is a grand idea.
Boonyville: Jan 24, 2011
I found this tidbit on my scan of the news, and thought I should make note for future finger pointing.


Governors tell feds to avoid government shutdown
By LIZ SIDOTI, Associated Press, US Governors Economy

Their states on the brink of financial catastrophe, governors pleaded Saturday for the divided federal government to avoid doing anything that would hamper the tenuous economic recovery back home.

Their message to Washington: prevent a government shutdown, abstain from spending cuts that dramatically will affect states and end even preliminary discussions about allowing states to declare bankruptcy.

"We don't need a hiccup now in our recovery," she added. "We are fragile."

Also of concern to the governors was talk about allowing states to declare bankruptcy as a way of handling their growing piles of debt.

Some congressional Republicans, conservative groups, and potential GOP presidential candidates such as former House Speaker Newt Gingrich and former Minnesota Gov. Tim Pawlenty have floated the idea. But House Majority Leader Eric Cantor, R-Va., has spoken out against the idea, an indication it's not going anywhere.

"We have been clear," Gregoire said. "We don't even want the subject discussed, let alone to move it forward."

Governors are worried about the potential effect on the municipal bond market. They also said it would increase interest rates and mean higher costs to state government.

Connecticut Gov. Dannel P. Malloy, a Democrat, said it was "one of the most dangerous discussions we've had in a long time" and called any such proposal "the height of insanity."

Still, at least one broke ranks.

"It should be a discussion," said Mississippi Gov. Haley Barbour, joining other likely 2012 GOP contenders.

Also: Government shutdown veterans of 1995: ‘Don’t do it!'

You, too, can fight NEO-SCUM.
VOTE PROGRESSIVE, and give ONLY to Progressive Candidates!

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