The Hill News

The New York Times reports today that policymakers 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 states are finding their own ways to save money. Last fall, the Nebraska Campaign for Liberty distributed copies of Tom Woods’s book Nullification to 44 of the 49 members of the Legislature. They followed up with discussion with some other senators about the kind of things they’d like to see done and provided some “model legislation” â€" courtesy of the Tenth Amendment Center.

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