If you missed Governor Cuomo’s daily press briefing this afternoon, you will want to watch one particular portion where Governor Cuomo calls Moscow Mitch McConnell out for suggesting that state and local governments file for bankruptcy. I found the clip at MSNBC, but it’s been a long time and I don’t remember how, or if there is a way, to embed an MSNBC video into a diary. However, I did transcribe it below for those who can not see the video via the link.
A little while later in the briefing, Governor Cuomo returned to the subject because he wanted to point out that New York State sends $116 billion more to the federal pot than they take out; while Moscow Mitch McConnell’s home state of Kentucky taxes out $148 billion more from the federal pot than they put in.
Governor Cuomo also later tweeted out these statistics.
UPDATE: There’s always more to the story!
Why would Moscow Mitch McConnell want to encourage states to file bankruptcy?
When Kentucky senior Senator and Majority Leader Mitch McConnell said this week that he would be in favor of allowing states to use the bankruptcy route to deal with their underfunded public pensions amid the pandemic emergency, state workers and retirees—already struggling with the economic and health crisis—were rightfully alarmed. “Using the bankruptcy route” is code for slashing pension benefits promised to state workers. Under current law, only cities and other local governments can file for bankruptcy and only with permission of the state.
McConnell supposedly represents Kentuckians and Kentucky already had the worst-funded state pension system in the nation—only 16% funded—before the COVID-19 market meltdown. Chris Tobe, a former trustee of the Kentucky pension and SEC whistleblower, suspects when the pension reports fiscal-year-end performance July 1st, its funding level may fall into single-digits. (Full disclosure: I served as Independent Counsel to Mr. Tobe in connection with his SEC whistleblower complaint.)
Presumably Kentucky would be the first state to use McConnell’s bankruptcy plan to eliminate state worker retirement security. Kentucky has over half a million (514,000) current and future pensioners who are unlikely to support his reelection.
Kiss Your State Pension Goodbye
Also, I wanted to speak to a point from our friends in Washington. Senator McConnell, who is the head of the Senate. You know, we've been talking about funding for state and local governments. And it was not in the Bill that the House is going to pass today. They said, "don't worry, don't worry, don't worry ... the next Bill."
As soon as the Senate passed it (this current Bill); Senator Mitch McConnell goes out and he says, maybe the states should declare bankruptcy. Okay? This is one of the really dumb ideas of all time. And, you know, I said to my colleagues in Washington that I would have insisted that state and local funding was in this current Bill because I don't believe they want to fund state and local governments. And not to fund state and local governments is incredibly shortsighted.
They want to fund small business, fund the airlines ... I understand that. But state and local government funds police and fire and teachers and schools. How do you not fund police and fire and teachers and schools in the midst of this crisis? Yes, airlines are important. Yes, small business is important. So are police and fire and healthcare workers, who are the front line workers. And when you don't fund the state, then the state can't fund those services. Makes no sense to me.
Also makes no sense that the entire nation is dependent on what the governors do to reopen. We've established that. It's up to this governor, it's up to this governor, this governor. But then you're not going to fund the state government? You think I'm going to do it alone? How do you think this is going to work? And then to suggest we're concerned about the economy ... states should declare bankruptcy? That's how you're going to bring this national economy back? By states declaring bankruptcy?
You want to see that market fall through the cellar? Let New York State declare bankruptcy; let Michigan declare bankruptcy; let Illinois declare bankruptcy; let California declare bankruptcy. You will see a collapse of this national economy.
So, just dumb.
Vicious is saying, when Senator McConnell said, "This is a blue state bailout." What he's saying is if you look at the states, that have coronavirus problems, they tend to be Democratic states: New York, California, Michigan, Illinois. They are Democratic states. So if you fund states that are suffering from the coronavirus, they are Democratic states. Don't help New York State because it is a Democratic state. How ugly a thought. I mean just think of what he's saying. People died. Fifteen thousand died in New York, but they were predominately Democrats, so why should we help them?
I mean, for crying out loud. If there was ever a time you were going to put aside, for you to put aside your pettiness and your partisanship, and this political lens that you see the world through, Democrat and Republican, and we help Republicans but we don't help Democrats ... that's not who we are.
It's just not who we are as a people. I mean if there's ever a time for humanity and decency. Now is the time. And if there ever was a time for you to stop your political, obsessive political bias and anger, which is what it's morphed into ... just a political anger. Now is the time. And you want to politically divide this nation now? With all that's going on? How irresponsible and how reckless.