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Friday, July 31, 2009

"Tsunami of Red Ink"--Financial Disaster in Alabama

Shaila Dewan writes:

In every part of Jefferson County — Alabama’s most populous county and its main economic engine — government managers have been scrambling to prepare for Saturday, when two-thirds of county employees eligible for layoffs — up to 1,400 — will be lost in an effort to stave off financial ruin.

“Outside of the city of Detroit,” said Robert A. Kurrter, a managing director with Moody’s Investors Service, “it’s fair to say we haven’t seen any place in America with the severity of problems that they’re experiencing in Jefferson County.” Moody’s rates Jefferson County’s credit lower than any other municipality in the country.

In July, the county asked Gov. Bob Riley, a Republican, to declare a state of emergency. Mr. Riley declined, delicately explaining that his authority extended to tornadoes but not to tsunamis of red ink.

link: Alabama County Faces Major Layoffs -


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