Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers. Unlike cities, the states are barred from seeking protection in federal bankruptcy court. Any effort to change that status would have to clear high constitutional hurdles because the states are considered sovereign. But proponents say some states are so burdened that the only feasible way out may be bankruptcy, giving Illinois, for example, the opportunity to do what General Motors did with the federal government’s aid. Beyond their short-term budget gaps, some states have deep structural problems, like insolvent pension funds, that are diverting money from essential public services like education and health care.
http://thepartyofknow.com/2011/01/20/nyt-path-is-sought-for-states-to-escape-debt-burdens-through-bankruptcy/
Only a matter fo time for this to creep north of the border? How many retirees are going to be forced to eat the proverbial (if not literal) dog food to get by, before someone shouts "enough!"?
But in a way it only affirms that seniors (especially it seems, former civil servants) rate low on the priority totem pole. And to many legislators, that equally proverbial "ice floe" is beginning to look very attractive..........
How long I wonder, will it be before these self-same legislators take a look at their own salaries and perks with an idea towards 'what is good for the goose is good for the gander'?
Stumble It!