taxes by 67%. but some of the states are in a dire space. if you provide a mechanism for state bankruptcy. we do this with municipalities. if you provide them the mechanism for bankruptcy if they need to, it gives them way to negotiate there are things that the state constitution could permit, likely decided by the court. it allows the states to sit down across the table from the big public employee unions and say look, we have no choice here. we now have to redo this. you have to be at the table and be willing to make concessions. bret: mara, there is no atmosphere as you talk about for any bail-out in washington. you think that this delaying mechanism actually is going to fly? well, it might. it will depend on what republicans hear from their states. from states who feel like this kind of relief, it s small,
taxes by 67%. but some of the states are in a dire space. if you provide a mechanism for state bankruptcy. we do this with municipalities. if you provide them the mechanism for bankruptcy if they need to, it gives them way to negotiate there are things that the state constitution could permit, likely decided by the court. it allows the states to sit down across the table from the big public employee unions and say look, we have no choice here. we now have to redo this. you have to be at the table and be willing to make concessions. bret: mara, there is no atmosphere as you talk about for any bail-out in washington. you think that this delaying mechanism actually is going to fly? well, it might. it will depend on what republicans hear from their states. from states who feel like this kind of relief, it s small,
jenna: and you re saying they have the power politically, the governor can make tough decisions like we re seeing for example in new jersey and step in and make some of these strong choices to help the finances of the state, is that what you re referring to in. right, if you re drowning in costs dictated by union contracts, public sector unions exist and have the right to collective bargaining pursuant to state law. if you have the will will actually confront unions you can threaten them with dire consequences up to and including the law that allows them to bargain. two newly elected governors have done that. jenna: you said man created this issue and it takes a strong man or woman to step in and fix it. one of the questions that does come up about the state bankruptcy is if cities can go bankrupt why can t the states? why don t you believe that would be a good option since we can do it really on a massive local level, legally if we wanted to?
washington bailout for states. right now, only local governments can file for bankruptcy. but a handful of republican lawmakers are considering legislation to allow states to do it, too. lawmakers in virginia, the carolinas, texas, florida, tennessee, they don t want their taxpayers having to cough up more of their hard-earned dollars because lawmakers in albany and springfield, illinois don t know how to budget properly. supporters say just the possibility of bankruptcy could force those big public employee unions to accept cuts in their retirement plans. a big expense for some states, shep. shepard: doesn t sound like really this is going to fly through congress, though. no. the house judiciary committee plans a hearing on this issue next month. chairman lamar smith said today there are significant constitutional concerns that should be addressed. there are also policy concerns. including whether state bankruptcy will actually