Alabama county files biggest municipal bankruptcy


















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Langford presided over the county commission during the height of the bond swaps that led to the run-up of the massive debt. Alabama Governor Robert Bentley, who as late as Tuesday pledged to call a special session of the state legislature to facilitate the September deal, said the vote to file for bankruptcy was unfortunate. Alabama county files for largest municipal bankruptcy. Associated Press.

Article Comments. Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service , click the X in the upper right corner of the comment box. To find our more, read our FAQ. Recommended for You. Home ». Classifieds ». Obituaries ». A second, separate problem emerged earlier this year when the state Supreme Court struck down a county tax on workers' earnings, which accounted for 40 percent of its annual unrestricted revenues.

By law, the county's tax policy is set by the state Legislature. Local lawmakers were unable to pass a law to replace the lost funding in its last session. Jefferson County, which is required by law to pass a balanced budget, responded by laying off employees, closing four courthouses, suspending road maintenance and using cash reserves to fund operating shortfalls and pay for repairs after devastating April tornadoes.



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