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Alabama county government job cuts.

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http://www.reuters.com/article/domes...5724P720090803

 

BIRMINGHAM, Alabama (Reuters) - Alabama's debt-ridden Jefferson County laid off about two-thirds of its 3,600 employees on Monday because of plummeting revenues, a move that will sharply curtail services in areas ranging from roads to courthouses.

The cuts are just the latest blow to Jefferson, whose population of 660,000 includes Birmingham, the state's largest city and its economic powerhouse. They come after the county racked up around $4 billion in debt by using exotic financial instruments to fund a revamp of its sewer system.

The work force cuts will hit the roads and transportation, revenue and security departments, and cuts will also affect the courthouse and information technology department as well as laborers paid on a per-hour basis, according to a senior county official.

The county has been forced to make drastic cuts because of a lawsuit questioning the legality of a county occupational tax, which raised $78 million annually and was vital to the county's operation.

Although the revenue is still being collected, it is being held in escrow under orders by an Alabama Supreme Court justice pending a decision on the tax case. Some members of the state legislature hope to pass a new tax bill this month to raise revenue for Jefferson County.

County workers placed on administrative leave under the cuts will be entitled to unemployment and some health-care benefits and will be called back after 45 days, according to a senior county official.

What is going to happen to those 660,000 people living in the county? Will they be able to survive without all those government workers? I sure hope so. I'm worried they won't survive because of the lack of government workers.

 

I'm not serious.

 

The people will do just fine without those government workers.

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View Posthttp://www.reuters.com/article/domes...5724P720090803

 

 

What is going to happen to those 660,000 people living in the county? Will they be able to survive without all those government workers? I sure hope so. I'm worried they won't survive because of the lack of government workers.

 

 

I'm not serious.

 

 

The people will do just fine without those government workers.

 

I really like this part, "racked up around $4 billion in debt by using exotic financial instruments". 'Stupid' is supposed to hurt.......tongue.gif

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View PostI really like this part, "racked up around $4 billion in debt by using exotic financial instruments".

 

 

translation- the crackers got robbed by smart inbvestment bankers. suckers! LOL!

 

while I'm sure they'll survive 45 days, abandoning infrasturture upkeep and other services is going to cost them more in the long run. oh well, it's alabamie. the schools and roads can't really get any worse. cwm27.gif

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View Posttranslation- the crackers got robbed by smart inbvestment bankers. suckers! LOL!

 

while I'm sure they'll survive 45 days, abandoning infrasturture upkeep and other services is going to cost them more in the long run. oh well, it's alabamie. the schools and roads can't really get any worse. cwm27.gif

 

 

Lots o crackers down there in Jefferson County.

 

http://jeffconline.jccal.org/home/ne...5/Article.aspx

 

I think the Mayor of Birmingham is a cracker too.

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alabama has a strange legistative set-up

 

new taxes can only be approved by the state, even local ones

 

and they meet about 28 days a year or something like that

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View PostI really like this part, "racked up around $4 billion in debt by using exotic financial instruments". 'Stupid' is supposed to hurt.......tongue.gif

 

 

auction rate securities - a market that was solid for decades but blew up when the credit crises hit. The interest rates on these spike through tje roof.

 

bottom line is nearly every municpicality is using short term debt to finance long term projects - a practice that is fiscally uunsound.

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