WASHINGTON, DC – Senator Dan Coats (R-Ind.) joined with several of his Senate colleagues to introduce the No State Bailouts Resolution (S. Res. 215), which expresses opposition to federal bailouts of financially struggling states.
“This resolution should remind state governments that they are responsible for their state’s financial solvency,” said Coats. “The federal government should not be in the business of reconciling state budgets, especially when Washington can’t even manage its own 17 trillion dollar deficit. In Indiana we have balanced our budget by adopting the Hoosier model of living within our means.”
The resolution was introduced two weeks after the city of Detroit declared bankruptcy—the largest such filing in U.S. history. Although cities have a legal authority to absolve their debt by declaring bankruptcy, states do not.
The No State Bailout Resolution was introduced by Sen. Mark Kirk (R-Ill.). Along with Coats, the bill is cosponsored by Kelly Ayotte (R-N.H.), John Barasso (R-Wyo.), Mike Crapo (R-Idaho), Ron Johnson (R-Wis.), Marco Rubio (R-Fla.) and Richard Shelby (R-Ala.). A copy of the resolution can be found here.
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