Kirk: Bankruptcy Should Be Option For States

WASHINGTON Freshman U.S. Sen. Mark Kirk (R-Ill.) says bankruptcy should be considered as an option for some states – such as Illinois – looking to get out from under crushing debt.

As WBBM Newsradio 780 Political Editor Craig Dellimore reports, some on Capitol Hill are looking for ways to allow the states to get bankruptcy protection from pension debt and other obligations.

LISTEN: Newsradio 780 Political Editor Craig Dellimore reports

Kirk says the only legal options available now for states such as Illinois are default – which could be devastating – or a federal bailout.

“Between a bailout, which has no possibility of passing in the House, and a default, which means suddenly, the state treasury runs out of money to pay for anything, is there something that allows a state work out its debt situation?” Kirk said.

Bankruptcy would allow the state to restructure its pension system so that it may preserve benefits for existing employees.

Kirk is WBBM 780’s guest on “At Issue” this weekend. You can hear more of his comments Sunday at 9:30 a.m. and 9:30 p.m.

  • George Kalogeras

    And the Bond holders Senator?

  • FR

    HEY Craig Dellimore, ASK THIS:
    Illinois should sue and fine companies that cheat Illinois consumers. KFC had the false advertising coupon for a free meal that almost no one could actually get. Honda according to an Aug-17-2010 Chicago Tribune article, is reducing the hybrid function when customers complain that their battery is weak under warranty. People bought the car based on gas mileage and battery guaranty. KFC’s parent, Yum, made 1 billion/yr profit, Honda made 3 billion/yr profit. Illinois could solve our budget NOT by increasing taxes on companies that provide jobs, but by suing companies that cheat Illinois consumers. This would be like a red light camera aimed at out of state companies that cheat Illinois consumers.

    • Jim

      The problem is that our Attorney General doesn’t do anything. I moved here from another state and our Attorney General was all over the place, but I never see or hear about Lisa.

  • FR idiot

    Easy there…. It’s just chicken you fattie!

  • FR

    No, it is about corporate FRAUD, and Illinois needing money.

  • Mark Kirk likes state default plan. « Fred Klonsky's blog

    […] CBS: […]

  • conservative

    It’s written in the United States Constitution that states cannot just file for bankruptcy.

    If states start filing for bankruptcy that means pensions will be canceled. All that one has worked for all their life, something that was promised to them—GONE.

    The Republican party just read the United States Constitution publicly. I’m guessing that was just “for show”.

    So Kirk wants everybody to lose their pension.

    Among all the mismanagement, the fault of politicians he wants to take the easy way out.

  • Andy

    God forbid we should cut spending.

    Raise taxes…yes.
    Declare bankruptcy…yes.
    Leave seniors whose only income is their pension out in the cold…yes.

    Cut the fat? Stop the corruption? End patronage, cronyism and nepotism? NEVER!!!


    HOLD ON, TONTO! This is not a Senator-related matter. Mind your own business! Besides, you a big LIAR, so we can’t trust anything you say anyway. Go play with your Republican playmates until we vote you out.

  • swizzle

    Everyone see how the Republicans talk about ‘Responsibility and Fiscal responsibility’ but now wants to duck his states financial Responsibilities?
    Republicans are the worst hypocrites

  • the cardinal

    The STATE should be allowed to file AFTER all the ELECTED state officials resign for their failure to balance a budget reduce spending and live within the financial means being provided by the tax payers. The State of illinois owes vendors, service providers and school districts billions of dollars They have BANKRUPTED 100s of Illinois businesses because they have failed to pay their bills on time. Allowing them to “reload and do it again is fool-hearted and rewards irresponsible management .

  • McHenry County Blog | Kirk Willing to Let Illinois Go Bankrupt

    […] an interview with Craig Dellimore with WMMB-Radio, U.S. Senator Mark Kirk indicated that he would be willing to […]

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