* From an op-ed written by US Sen. Mark Kirk…
I welcome the State Legislature’s move to begin this necessary debate by proposing tough [pension] reforms - now is the time to act before other government programs lay claim to scarce tax dollars. To reinforce the message that local programs need local funding, I will soon reintroduce the No States Bailouts Resolution in the U.S. Senate.
This legislation affirms that States, as sovereign entities, are responsible for their own debts and retain control over their spending and taxation. The resolution, citing the historic example from the 1842 financial crisis, declares that historic precedent opposes a bailout of the states and that the Federal Government should “take no action to redeem, assume, or guarantee State debt.”
* This isn’t the first time Kirk has proposed the idea. From a press release in May of 2011…
In a move aimed at protecting the nation’s federal credit rating, U.S. Sen. Mark Kirk (R-Ill.) announced today that he and 14 Republican Senators have introduced the No State Bailouts Resolution, S. Res. 188, which bans federal bailouts of financially struggling states like Illinois.
His previous resolution is here.