States can’t declare bankruptcy, but McConnell won’t back a huge stimulus package for them | Vox


As my colleague Emily Stewart has documented, state budget shortfalls could exceed $500 billion this year, an amount that easily swamps the $283 billion in lost revenue that states experienced in the aftermath of the Great Recession.

New York State alone is expecting between $10 billion and $15 billion in lost tax revenue, and Ohio Gov. Mike DeWine has proposed slashing up to 20 percent of his state’s spending to make up for its shortfalls.

The mayor of Los Angeles announced upcoming furloughs for city workers on Sunday.

And despite this mounting pressure, efforts to include more federal aid to states and local governments in the latest stimulus package failed in congressional negotiations Tuesday night.

Senate Majority Leader Mitch McConnell has suggested states should be able to declare bankruptcy instead.

Source: States can’t declare bankruptcy, but McConnell won’t back a huge stimulus package for them – Vox

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