Posted on 04/22/2020 3:13:00 PM PDT by abb
Gov. Phil Murphy on Wednesday launched into a fiery takedown of U.S. Senate Majority Leader Mitch McConnell for saying state and local governments with cratered finances because of the coronavirus pandemic should be allowed to file for bankruptcy rather than rely on federal aid.
“Come on, man,” Murphy said. “That is completely and utterly irresponsible. There’s no level of responsibility associated with that. And I don’t care what party you’re in.”
“Because that won’t happen,” the governor said. “We won’t go bankrupt. You have my word we won’t go bankrupt.”
But without federal aid, Murphy said, states will be forced to “gut the living daylights” out of “the exact services that our citizens need right now."
“We will just cut, cut, cut, and cut,” he continued. "We won’t go bankrupt, senator, but we will leave our citizens in the lurch at their most profound hour of need. We will leave people on the beach, alone, helpless. That is what will happen in New Jersey. … And that will happen in Kentucky. You have my word.
Right now, bankruptcy isn’t possible. State doesn’t have the ability to file under current law, and Congress would have to act to allow it.
Murphy has said New Jersey might have to lay off an “historic” number of public workers if Congress doesn’t do agree to state aid. The governor has also urged state lawmakers to allow the state to borrow billions.
The governor added that if there’s no state aid, unemployment would likely double in America because a rash of public workers would lose their jobs.
(Excerpt) Read more at nj.com ...
To a pot, everyone else looks like a kettle.
Exactly what section of the bankruptcy code provides for a state to file bankruptcy?
IIRC, only cities and counties have that option. The state is stuck with the tab.
Perhaps, some legal eagle will weight in on this topic.
Every speck of this is about public employee pensions. McConnell is basically telling states that they can’t continue to promise public sector workers full benefits when everyone in the private sector will be taking it in the shorts. The budgets can’t be balanced without digging into those pension benefits and/or redoing public employee union contracts.
Either go bankrupt of tax the hell out of your citizenry. Good luck with that.
Hey Murphy, you PUNK...PAY YOUR OWN BILLS!! You are like the DRUNK at the BAR that wants SOMEONE ELSE to pay the exorbitant bar tab! GSY (GO SCREW YOURSELF)!!
McConnell is doing something very well, indeed, if Murphy is screaming like this.
If the US is forced into bailing out leftist states, the Republic is at an end.
Do it Dem! It just makes your recall that much easier. Murphys Law of Demasses!
“ Do you realize that if my state declares bankruptcy I could renegotiate all of the state employee salaries and pension benefits? Do you realize that I could then make my state solve it? We can’t have that!“
Governor mussolini doesn’t want to hear the truth
But without federal aid, Murphy said, states will be forced to “gut the living daylights” out of “the exact services that our citizens need right now.”
A million meticulously mantained soccer fields, recycling centers, too many police and fire departments, chiefs, superintendents, principals & teachers making high 6 figure salaries?
The governors are the one directing whether their state stays open or closed. They make the decisions, deal with it.
I don’t want to pay these irresponsible oafs a penny. Those who elect them will suffer. Tough.
He’s telling the states, “Open up now and get some tax revenues as people return to work, or we will watch you descend into the seventh layer of Hell, and laugh!”
I like that blue state governors are going psycho over bond monies fleeing to safer states, long before changes to bankruptcy laws are made.
It dries up their muni bond market and drives up borrowing costs, and that is a huge plus.
“New Jersey might have to lay off an “historic” number of public workers”
Cops, After School programs, Kindergarten, Senior/Child nutrition will all be the very first things to get cut. Hit Mommy & Daddy in the gut to teach the rubes a lesson.
How Dare You question your betters.
Bankruptcy for the state, Nevaaah!
Bankruptcy for you peons, you betcha!
Why not it’s good enough for business to do so Governor. Lock down ahole.
Governor tip for you Don’t kill the goose that lays the golden eggs.
Instead of using bankruptcy to protect the fisc of the state, and with the state population already stretched thin with the economic shut downs, I guess Murphy instead must propose to raise taxes, raise the state’d debt, or both. Instead of getting the state some relief with bankruptcy, Murphy will eat up any economic recovery with higher state taxes and more state debt, I guess. You know he will not permanently shrink state government to make it permanently leaner.
Double LOL!
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