JeffCo Hole Deepens

The financial meltdown in Jefferson County worsened this week with offices in Alabama’s largest county figuring out how to operate without sufficient staff and local lawmakers still disagreeing over how to fix the problem.

Meanwhile, more than 1,000 county employees are expected to be placed on unpaid leave at the end of the week, which could have far-reaching affects on other governments within the county.

The problem concerns the loss of an occupational tax struck down as unconstitutional in January by a local judge, a ruling that the county is appealing. The tax proceeds provide one-third of the county’s general fund.

Local lawmakers met earlier this week but still couldn’t agree on a bill to reenact the tax. Gov. Bob Riley said he would only call a special session if there is majority support.

Jefferson officials now are considering closing satellite courthouses sooner than first expected because of the lack of funds, according to the Birmingham News. The paper reported Monday that county schools, cities, and others may experience delays receiving property tax revenue because of employee cuts at the county tax collector’s office.

Interim finance director Travis Hulsey on Monday reportedly said the county had $5 million in the general fund bank account with $3 million in vendor payments due over the next few weeks and not enough on hand to pay employees.

“We will not have the cash on Aug. 7 to make payroll,” Hulsey said.

The current crisis has nothing to do with the county’s $3.2 billion of troubled sewer debt, and has raised the possibility that Jefferson County could file the largest municipal bankruptcy in U.S. history.

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