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MC_FIORINA.01.JPGRepublican U.S. Senate candidate Carly Fiorina said Wednesday that she knew states are prohibited by federal law from declaring bankruptcy despite her comments the day before that bankruptcy "should always be considered" as an answer to California's fiscal problems.

Fiorina also called the fact that California can't declare bankruptcy a "technicality." Her comments Tuesday, made in the city of Colton, has spurred speculation about whether she was familiar with the federal law.

The Riverside Press-Enterprise quoted Fiorina saying, ""Whether that is the right approach now, I don't know. I think bankruptcy, as a possibility, at the very least focuses the mind on what has to be done to salvage a situation."

When asked by The Bee on Wednesday whether she knew states couldn't declare bankruptcy, Fiorina answered, "Sure, I knew, but what cold comfort is that to all these California voters who may not know that technicality but who are sitting here knowing that by any common-sense definition, this state can't pay its bills.

"And in fact, the media has described California as bankrupt for months. So I find it interesting that the Democrats are saying legally, it's not possible. Legally, it's not possible. But the reality of where we are ought to be focusing people's minds on what needs to be done."

When asked what she meant to say the day before, Fiorina answered, "It's a legal term. It's also a common sense, everyday term that people use. Morally bankrupt, fiscally bankrupt. In every common sense definition of the word, this state is in serious trouble."

Federal law restricts access to bankruptcy to individuals, corporations, and in some cases, municipalities, such as Orange County or the city of Vallejo, both of which have declared bankruptcy.


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