New York Gov. Andrew Cuomo ridiculed Senate Majority Leader Mitch McConnell for suggesting that bankruptcy might be a better option than bailing out states with budget shortfalls.
The coronavirus pandemic has left many states with holes in their budgets because of revenue losses during the shutdown. On Wednesday, McConnell recommended changing federal law to allow states to declare bankruptcy, a move Cuomo opposes.
“Sen. Mitch McConnell goes out, and he says maybe the states should declare bankruptcy. … This is one of the really dumb ideas of all time,” the governor said Thursday. “I said to my colleagues in Washington: I would have insisted that state and local funding was in this current bill because I don’t believe they want to fund state and local governments. And not to fund state and local governments is incredibly shortsighted.”
He continued, “They want to fund small business, fund the airlines. I understand that, but state and local government funds 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?”
McConnell said he would not rush any aid to states and local governments, adding, “We’re going to push the pause button here because I think this whole business of additional assistance for state and local governments needs to be thoroughly evaluated.”
Cuomo argued that waiting to help states and local governments could damage the economy, especially if they followed McConnell’s proposal of allowing states to declare bankruptcy.
“You want to see that market fall through the cellar? Let New York state declare bankruptcy. Let Michigan declare bankruptcy. Let Illinois declare bankruptcy. Let California declare bankruptcy,” Cuomo said. “You will see a collapse of this national economy. So, just don’t.”
