Now the question is purely academic context, because federal law still does not allow state government to file for bankruptcy. But if the conservative forces in Washington continues to expand, it is likely to change.
Now that someone has tried to push Congress to pass a law requiring all 50 states expressly permitted to seek bankruptcy protection. Currently about half of the states allow municipalities to file for bankruptcy.
Who support the idea that they are struggling to help California and other serious deficit in the state. Taking into account the state governors and legislators face in the years 2011 and 2012, the huge budget gaps, as well as pension and health care of the severe shortage of funds, a state bankruptcy can all be placed on the table, and then to develop a sustainable long-term financial recovery plan.
If GM can be revived through bankruptcy, state why not?
U.S. Tax Reform Association (Americans for Tax Reform) is to support the state government the right to enter one of the groups of formal insolvency. The Association of State Officer Patrick - Gleason (Patrick Gleason) do not deny that in efforts to promote the Association of pensions and health insurance issues into focus, but he also said that trade unions need to face the reality of state finances.
Gleason said: "Through consultation, so that the states match the capacity of the contract, which is consistent with the interests of trade unions."
Some unions see a more sinister motive: to wipe out union workers a large position in the last fortifications, also is in the public sector. About 37% of public sector workers belong to trade unions, the private sector is only just over 7%.