A ME S SAGE F R O M THE D EAN
A few months ago I attended an ABA conference in San Diego. On the trip I read about the $9 billion budget hole facing California, which has the largest state economy in the United States and a much bigger gross domestic product than Greece. California also holds the dubious distinction of having the most serious deficit in the country and one that mirrors on a smaller scale the looming fiscal crisis hanging over the federal government. Unfortunately, California is not alone. Up to 30 states have to figure out, if they haven’t done so already, how to close significant shortfalls and balance their budgets, according to the Center on Budget and Policy Priorities. MICHAEL A. FITTS Dean and Bernard G. Segal Professor of Law
Penn Law Professor David A. Skeel offers a way out for governors and legislators who no longer
have the luxury of turning to the federal government for bailouts because the stimulus money that kept states afloat is nearly gone. He makes the case in this issue’s cover story that we need a new state bankruptcy law.
David has the credentials and the skill to make that argument. In addition to being a scholar in
the area of corporate law, he is a prolific author who brings life to arcane subjects. He explains that the law would give states filing for bankruptcy the power and permission to restructure debt by rewriting union contracts and possibly renegotiating existing pension benefits. To him, the benefits are clear. In his view, states are the new frontier in “too big to fail.” A new state chapter in U.S. bankruptcy law, he argues, would reduce the federal obligation and save taxpayers money. David’s piece is an interesting and thought-provoking read. I commend it to you. Leo Strine L’88, the new chancellor of the Delaware Court of Chancery, does not have the power to enact state bankruptcy laws, but he does wield enormous influence in the area of corporate law, given the number of businesses that incorporate in Delaware. Leo, who is the subject of a long profile, takes very seriously his role as a fair arbiter of the law. He takes on executives, directors and shareholders, often with pointed commentary. Leo, a former student of mine, has built a national reputation as a thoughtful and powerful figure in corporate law. He may not be able to write bankruptcy laws, but he is shaping the corporate landscape.
And you, our wonderful alumni, are shaping the future of Penn Law School. As I hope everyone
knows by now, we recently held a grand dedication of Golkin Hall. It is remarkable that we managed to raise millions of dollars for the new building during the worst economic downturn in generations. We were able to do so because so many alumni saw the need and lent support. The fruits of your efforts were seen in April, when we welcomed Justice Sonia Sotomayor to Penn Law School, capping off a weeklong celebration. It was my proudest moment as dean. Thank you.
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