Isakson sees bankruptcy as option for states

ATLANTA - Sen. Johnny Isakson says bankruptcy could be a good solution for struggling states straining under pension debt.

The idea has become part of a growing discussion about how states will grapple with their budget woes, some due in large part to pension payments.

Speaking to the Atlanta Press Club before he headed back to Washington for the State of the Union on Tuesday, Isakson said bankruptcy is not a term to fear but can be a fix. He says following the example of private sector companies like Delta Air Lines, which filed for bankruptcy in 2005 and emerged two years later.

Isakson is a member of the Senate Committee on Health, Education, Labor and Pensions. The 66-year-old GOP incumbent was elected to his second term in November.

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