Bankruptcy for governments considered

this is ok, right?? just not the poor...

CARSON CITY -- A Senate committee was asked to decide Wednesday whether local governments that fall into debt should be allowed to file bankruptcy.

James Wadhams, lobbyist for the Nevada Rural Electric Association, told the Senate Government Affairs Committee that permitting a general improvement district to file for reorganization under the federal bankruptcy law would permit an "orderly process" to solve the problem.

Committee members started discussing whether that authority should be extended to all local governments.

Senate Bill 67 ran into immediate opposition from Carole Vilardo, executive director of the Nevada Taxpayers Association, who said "our state's credit rating would tank" if local governments were allowed to file for bankruptcy.

She noted that current law allows those local governments in distress to work with the state Department of Taxation to remedy their problems.

SB67 was prompted by an issue two years ago in a dispute between the Overton Power District and the Idaho Power Corp. The Overton Power District, which supplies electricity to Mesquite and other areas in northeast Clark County got into a dispute with the Idaho company over a long-term purchase agreement for $320 million worth of energy. The Idaho company filed a lawsuit against the Overton Power District.

more...

http://www.lasvegassun.com/sunbin/stories/lv-gov/2005/mar/03/518385583.html

:grr:

,...restricted. WTF country am I living in? :puke:

Somehow I don't think the US/World Bank/IMF would allow that..