Lawmakers lack consensus on Jefferson County revenue

The 2012 regular session of the Alabama Legislature will begin on Tuesday, but there is still little agreement on a solution to the financial problems posed by Jefferson County’s record-breaking bankruptcy. The county will not be able to exit bankruptcy until it demonstrates the ability to manage its own operations and meet its fiscal obligations.

Without a plan to exit bankruptcy, the county would find itself unable to provide key services. Zoning and building inspections, programs like Meals on Wheels and prescription drug benefits, and motor vehicle services would all be reduced or eliminated.

Nine separate bills have been proposed to help the county regain control over its finances. Some of the proposed legislation is similar to  considered and rejected last year.

The basic problem seems to be that the county lacks “home rule”—the authority to levy taxes or remove earmarks, among other things, unless authorized to do so by the state legislature. Several of the proposed bills would grant the county the power to do one or both.

In any case, it seems clear that the county will not be able to emerge from bankruptcy successfully without additional revenue, according to Jim Pratt, a lawyer who has served as facilitator between county officials and the state legislature. Pratt is also the president of the Alabama State Bar. “There is no way for the county to show that it’s financially feasible” without additional sources of revenue, he said.

The Birmingham News report can be found here.