Monday, January 24, 2011

California Treasurer Opposes Republican Plan to Let States Go Bankrupt

Former Minnesota governor and possible presidential candidate Tim Pawlenty says it's worth considering allowing states to declare bankruptcy to avoid paying pensions to state workers. Many states, including California, haven't set aside enough money to fulfill their pension obligations. House Republicans are expected to introduce legislation allowing states to go bankrupt. Opponents, like California Treasurer Bill Lockyer say that would be a big mistake. Cameron Jones reports.