–Senate Minority Leader: ‘Everybody Is Looking’ At State Finance Probs
–Sen. McConnell: ‘Not At All Clear’ Feds Can Help State Funding Woes
–Important For Admin To Move On Entitlement Reform
By John Shaw
WASHINGTON (MNI) – Senate Minority Leader Mitch McConnell said
Tuesday that “everybody is looking at” the financial troubles of state
governments, but added that it’s “not at all clear” that the federal
government can do anything to help the states.
At a briefing, McConnell said many experts are “examining” the
severity of financial problems affecting state governments.
But he concluded his comments on this topic with a terse assertion:
“There will be no bailouts.”
McConnell’s comments come on the heels of equally hard-line
comments Monday by House Majority Leader Eric Cantor.
“There will be no bailout of the states,” Cantor said Monday.
He said state governments have the power to adjust both revenues
and spending.
On other matters, McConnell said that Senate Republicans want to
work for “dramatic reductions in our annual spending” and support the
House GOP’s plan to bring parts of the fiscal year 2011 budget down to
FY’08 levels.
McConnell said he is not overly impressed with President Obama’s
reported decision to call for a five year freeze on certain parts of
discretionary spending in his State of the Union speech.
He said it would be far more important for Congress to work with
the administration on serious entitlement reform.
“Entitlement reform will only be done on a bipartisan basis,”
McConnell said.
Republicans have called on Obama to include a major entitlement
reform plan in his State of the Union address.
** Market News International Washington Bureau: (202) 371-2121 **
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