The Jefferson County Commission Tuesday voted to hire a director of capital structure and investments to manage the $4.2 billion of debt that was placed into bankruptcy in November.
The Alabama county, which does not have a finance director, reportedly plans to pay the debt manager $130,000 a year to oversee the outstanding warrants as JeffCo proceeds through the largest bankruptcy in the country.
The hiring decision comes as the county faces a $40 million general fund deficit. Commissioners have asked state lawmakers to approve one of several alternatives to alleviate the fiscal shortage.
The Alabama Legislature began its annual session last week. It runs through mid-May.
In bankruptcy court hearings late last year, County Commission President David Carrington testified that some local lawmakers refused to give the county fiscal relief unless it filed for bankruptcy.
Jefferson County’s bankruptcy filing was precipitated by its $3.1 billion of outstanding sewer warrants, most of which are in default. Another $200 million of general obligation warrants, $814 million of public school capital revenue warrants and $82.5 million of lease revenue warrants are also outstanding.