February 7, 2011
State Legislators and Governors Oppose Congressional Action on State Bankruptcy
The nation's legislators and governors have signed a joint letter stating stating their opposition to proposals to allow states to declare bankruptcy. The letter, signed by the leaders of the National Conference of State Legislatures and the National Governors Association, reminds members of Congress that states have faced growing budget deficits for several years and have closed those deficits by cutting spending, and when necessary, increasing taxes.
Governors and legislators have had to make tough and politically unfavorable decisions to be fiscally responsible and balance state budgets. Throughout this process, state elected officials have never walked away from their obligations to constituents or to the bond markets by requesting that the federal government allow states to receive bankruptcy protection.
While a number of states continue to face budget deficits over the next few years, lawmakers will continue to use their sovereign authority to balance their budgets and meet their obligations. State and local leaders are interested in working with their federal partners to improve the fiscal stability of government at all levels.
NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.