Can states declare bankruptcy? The “blue state bailout
4/29/20
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from VOX,
4/29/20:
No, states shouldn’t go bankrupt. Yes, they have to deal with their budgets — and need federal help to do so.
But the controversy points to a broader problem states across the country are facing — their costs have skyrocketed and their revenue has plummeted, and unlike the federal government, they can’t run a deficit. They’ve got to balance their budgets…
New Hampshire Gov. Chris Sununu, for example, warned his state could need to make $500 million in cuts next year. Missouri Gov. Mike Parson estimated he’ll have to cut $700 million and has already put a pause in $227 million in state funding. Los Angeles Mayor Eric Garcetti has said he plans to furlough thousands of city workers.
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