State and Municipal Debt: The Coming Crisis?

This morning I testified at a Congressional hearing held by the Committee on Government Oversight and Reform. The subject was “State and Municipal Debt: The Coming Crisis?” It was a very informative hearing with testimony provided by Nicole Gelinas of the Manhattan Institute, Professor David Skeel of the University of Pennsylvania and Iris Lav of the Center for Budget and Policy Priorities. The main area of agreement: Medicaid and health care costs are big costs drivers in budgets.

There was a discussion of the pension crisis – how big is it and what should be done?  the discount rate controversy, how a bankruptcy law would work and the pros and cons of such a provision for states.

The questions asked by the committee members were excellent. Video to be posted shortly.