Patrick: We’re Not Bankrupt

BOSTON (AP) – Massachusetts is facing at least a $1 billion budget gap, but Gov. Deval Patrick says there is no need for the state to consider filing for bankruptcy.

States currently are prevented from filing for bankrutpcy, as a corporation or city might. But some like Illinois and California are facing situations so dire that bankruptcy has been discussed as a possible way to break union contracts and reconstitute their financial situation.

Patrick says, “We don’t need that.” And when asked if he’s considered it, he replies, “Nope.”

He will unveil a fiscal 2012 budget next week containing heavy cuts in large part required by a loss of federal stimulus money.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Richard

    It will be another year or two before deval has to use bankrupsy. For now we’ll use stimulus money that was also borrowed.. Try doing your check book this way and see what happens….

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