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Kirk: Bankruptcy Should Be Option For States

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Mark Kirk

Republican Sen.-elect Mark Kirk celebrates as he speaks to his supporters after defeating Democrat Alexi Giannoulias Tuesday, Nov. 3, 2010, in Wheeling, Ill. (AP Photo/Nam Y. Huh)

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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.

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