WASHINGTON — States strongly oppose Congress drafting legislation allowing them to file for bankruptcy protection, which is not needed and would actually hurt them as well as the markets, economists and a representative of the National Governors' Association warned members of the Senate Budget Committee Thursday.

"No governor or state is requesting this authority, and it is also true that such authority will likely increase interest rates, raise the cost of state governments, and create more volatility in financial markets," Raymond Scheppach, executive director of the NGA, wrote in testimony provided to the panel.

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