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Illinois Becomes First State to Tap Federal Reserve Liquidity Relief Under CARES Act - Should More States & Cities Use It?
by Causes
34,759 actions taken this week
  • Harry
    Voted Yes
    06/10/2020
    ···

    If a municipality taps emergency funding then there should be a hook, failure to make payments allows the Fed to appoint a "State Fiscal Administrator" replacing state legislature and Governor. Administrator like a bankruptcy appoint Conservator is responsible to bring income and obligations into line, this would include the power to enact additional taxes and fees. Having this crudgel is a powerful disincentive to mismanagement.

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