A good question is raised on over at Regaining the Center:
Republican leaders said this week that they would oppose any attempts for States to ask the Federal Government to undertake a “bail out”. This seems a wise position to take. It does, however, also raise a number of questions.
Without bankruptcy, some States will have to raise the money (read raise taxes) to pay their bills. Republicans are now on record as against raising taxes. I wonder if this is a hint at a larger plan?
I’m sure it is a combination of both. I’m against it because I think states should have to honor their agreements and pay for their mistakes. They shouldn’t be allowed to weasel out of commitments any more than anyone else who is capable of paying off their bills shouldn’t be able to. They can raise taxes and cut spending, they just don’t want to.
That it will be difficult is not a valid excuse for weaseling out of debts incurred.