New York Gov. Andrew Cuomo criticized Senate Majority Leader Mitch McConnell (R-Ky.) for proposing a change to existing law that prevents states from declaring bankruptcy, before daring the Republican lawmaker to adopt the idea.
“Not to fund state and local governments is incredibly short-sighted,” Cuomo said. “They want to fund small businesses, fund the airlines, I understand that, but state and local governments fund police, and fire, and teachers, and schools. How do you not fund police, and fire, and teachers, and schools, in the midst of this crisis?”
Then, at a briefing Friday, Cuomo dared McConnell to pass a federal law letting states declare bankruptcy, saying, “I dare you, and let the president sign that bill.”
“I dare you. ... You want to send a signal to the markets that this nation is in real trouble? ... do that,” Cuomo said.
McConnell has suggested that federal aid to states could amount to bailing out cash-strapped states controlled by Democratic administrations.
Current law prohibits states from declaring bankruptcy.
“My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them now so they don’t have to do that,” the Kentucky senator said. “That’s not something I’m going to be in favor of.”
“I think this whole business of additional assistance for state and local governments needs to be thoroughly evaluated,” McConnell said on the show. “There’s not going to be any desire on the Republican side to bail out state pensions by borrowing money from future generations.”
At Friday’s briefing, Cuomo said that while New York was facing a $13 billion deficit, it would never declare bankruptcy.
“The state finances were very, very strong and then this economic tsunami hits and you shut down all the businesses, and everybody stays home,” he told the briefing.
McConnell has also faced criticism for his comments within his own party.
“If he doesn’t regret it yet, I think he will regret it,” Hogan said. “The last thing we need in the middle of an economic crisis is to have states all filing bankruptcy all across America and not able to provide services to people who desperately need them.”