Topinka urges Congress to reject state bankruptcy -

Topinka urges Congress to reject state bankruptcy

SPRINGFIELD, Ill. (AP) -- Illinois Comptroller Judy Baar Topinka is speaking out against the idea of letting states declare bankruptcy.

Topinka sent a letter to Congress that calls the idea "misguided at best." Congress is holding hearings on whether states should be allowed to escape debt and old bills by declaring bankruptcy.

Supporters argue it would be a good option for states swamped with debt and might give them leverage in negotiating employee benefits.

But in a letter released Monday, Topinka said bankruptcy threatens to create financial uncertainty.

She said it would halt public works projects and hurt business recruitment.

Topinka also says it would simply be wrong for states not to pay their debts.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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