tomhudson's Journal: Legal loophole for states to file chapter 9 bankruptcy

46 out of 50 states are in financial trouble (maybe more ...). However, there is no apparent provision for a state to declare bankruptcy, unlike Chapter 9, which enables cities and government institutions to go bankrupt.

However, there is a loophole (the more laws you pass, the more loopholes you create, same as the more lines of code you have, the more places for bugs to get into. Lawyers, of course, would call this a "feature").

http://www.law.cornell.edu/uscode/usc_sec_11_00000101----000-.html

(40) The term âoemunicipalityâ means political subdivision or public agency or instrumentality of a State.

So
1. The state declares that the entire legal and financial operations of the state is an instrumentality of the state (which it already is in fact, so might as well make it in law as well, right?).
2. The resulting entity files for Chapter 9
3. PROFIT!

In the case of, for example, California, the state can then legally do things like impose an "offset" to Prop 13, so that all properties are taxed at their market value, change pension plans, hiring contracts, etc.

not clearly enough a political advantage

[Bill Dog]

the state can then legally do things like impose an "offset" to Prop 13, so that all properties are taxed at their market value, change pension plans,

It might be a wash. Leftists use money for same single goal as they use bullying and anything else -- to acquire greater power (over things and people) (to be able to enact their morality). Raising taxes might increase govt. revenue, which is more money to buy more power with, but allowing the grotesque level of union theft to be lessened would cause them to l