Amid coronavirus, bail out states but not irresponsible pension funds

Source: USA Today - View Original Article
Published: Apr 30, 2020
Category:
Bias Rating:

59% Liberal


Bias Score Calculation:


Policies:

Taxes

Sentiments

96% "Our system treats states as sovereign entities, meaning that they fall outside bankruptcy laws.""
95% "What have have President Donald Trump and Senate Majority Leader Mitch McConnell done in response?""
79% "They have stirred up a ruckus by suggesting that states go through bankruptcy rather than get bailed out with federal aid.""
78% "They are wrong because the case for states getting immediate help to cover the losses from the coronavirus pandemic is strong -- stronger, in ..."
76% "Senate Majority Leader Mitch McConnell sends states a much-needed message A few states have one or more pension funds that are beyond repair.""
74% "Several states, including California, have huge pensions funds that have been inching ever closer to dangerous precipices for years.""
70% "These were some of the measures taken in the bipartisan 2016 law known as the PROMESA Act that saved Puerto Rico from defaulting on ..."
63% "With states, what is needed is a clear-eyed look at why they are essential, what many have done wrong and what needs to be ..."
62% "Nevertheless, the simple truth is also that there are enough of them that they can't simply be cast adrift without major consequences to the ..."

We have listed the top 10 sentiments. More sentiments do exist. Please review the full article for more information.



*Our bias meter rating uses data science including sentiment analysis, machine learning and our proprietary algorithm for determining biases in news articles. The rating is an independent analysis and is not affiliated nor sponsored by the news source or any other organization

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Contributing sentiments towards policy:

96% : Our system treats states as sovereign entities, meaning that they fall outside bankruptcy laws.
95% : What have have President Donald Trump and Senate Majority Leader Mitch McConnell done in response?
79% : They have stirred up a ruckus by suggesting that states go through bankruptcy rather than get bailed out with federal aid.
78% : They are wrong because the case for states getting immediate help to cover the losses from the coronavirus pandemic is strong -- stronger, in fact, than the case for many of the corporations lining up at the public trough.
76% : Senate Majority Leader Mitch McConnell sends states a much-needed message A few states have one or more pension funds that are beyond repair.
74% : Several states, including California, have huge pensions funds that have been inching ever closer to dangerous precipices for years.
70% : These were some of the measures taken in the bipartisan 2016 law known as the PROMESA Act that saved Puerto Rico from defaulting on its general obligation bonds.
63% : With states, what is needed is a clear-eyed look at why they are essential, what many have done wrong and what needs to be done now to fix the situation.
62% : Drop Dead," or the somewhat misleading "Let Detroit go bankrupt" on a Mitt Romney column in The New York Times.
62% : Nevertheless, the simple truth is also that there are enough of them that they can't simply be cast adrift without major consequences to the economy.
59% : Their revenue from taxes and tolls is in free fall.
59% : The good news is that Congress would have a lot of leverage to force states and public employee unions to major concessions in return for help.
58% : ANOTHER VIEW:
56% : The state, and its cities and counties, would become outcasts, unable to finance big projects through bond markets, and unattractive to new and existing businesses.
53% : They have few services they can cut and, in areas such as health care and the processing of unemployment checks, they need to spend more.
53% : Even so, Trump and McConnell are right in the sense that some states have been irresponsible for years in agreeing to overly generous pensions for public employees or not making the necessary annual payments to keep their pensions afloat.
52% : (After taking considerable grief, McConnell allowed that he might OK some short-term aid in return for shielding businesses from COVID-19 liability.)
45% : At the same time, proclamations that states should be thrown to the wolves are not very helpful, either.
38% : They seem to want to evoke headlines of yore like the New York tabloid "Ford to City:
38% : McConnell is also wrong, as a technical matter, in using the term bankruptcy.
34% : State and local governments, like the rest of us, are getting hammered by the coronavirus.
33% : If one were to to become the first state since Arkansas in 1933 to default, creditors would be thrown into a free-for-all without established rules.
29% : States shouldn't be forced to default in the midst of a historic pandemic.
28% : Voting for such a thing would be political suicide for lawmakers in states that have been more responsible.
23% : Some states that have put themselves in huge holes don't deserve a break.
22% : State politicians seeking votes have found it too easy to make promises to public employees and let future generations worry about paying the bills.
20% : Let us state unequivocally that Trump and McConnell are wrong.
14% : Those concessions could include reductions in payouts, mandated increases in state contributions, some loss of state control over pension finances, and spinning off public employee pensions as free-standing entities so they don't take down governments when they fail.
8% : The best course would be for Congress to give states immediate assistance to deal with pandemic-related ravages, then come back to the increasingly dire condition of some states later in the year, perhaps in a lame-duck session after the election.
7% : The worst is Illinois, where several funds representing state and Chicago workers are so underfunded that it's hard to imagine who'd be willing to make them anything close to whole.
1% : Pension funds in the worst shape are not going to get anything close to a full bailout.

*Our bias meter rating uses data science including sentiment analysis, machine learning and our proprietary algorithm for determining biases in news articles. The rating is an independent analysis and is not affiliated nor sponsored by the news source or any other organization

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