McConnell Favors Bankruptcy Over Aid To Strapped States. Connecticut Makes Longevity Payments This Week.

Senate Majority Leader Mitch McConnell (R-Kentucky) told talk radio host Hugh Hewitt that “he favors allowing states struggling with high public employee pension costs amid the burdens of the pandemic response to declare bankruptcy rather than giving them a federal bailout,” according to a Bloomberg report.

Hewitt pointed to California, Illinois, and Connecticut as high pension obligation states that may need federal money as the Covid-19 pandemic increases expenses while revenues decline. McConnell said bankruptcy protection has “saved some cities” and allowed them to address long term deficits.

Connecticut will see a budget deficit of several hundred million dollars this year, but the state’s finances are robust enough to make longevity payments to state employees this week.