BIRMINGHAM, Ala., Nov 17 (Reuters) - They call it "Alabama
Punting Syndrome," and it has a lengthy history.
Jefferson County's bankruptcy filing surprised many, but
for Alabama politicians, it was another in a series of
incidents in which local officials are unable to solve problems
and instead "punt" them to the federal level.
Alabama citizens in the southern U.S. state in the past
turned to federal courts to address segregation and healthcare
issues when local officials have not responded.
Jefferson County became the latest example last week. After
falling short of a negotiated deal with creditors owed $3.14
billion of sewer-system debt and unable to win state
legislative approval to plug a hole in operating revenue, the
county filed for a rare Chapter 9 municipal bankruptcy.
"The solution would be easy without the politics," said
Jefferson County Commissioner Jimmie Stephens. He added that
members of the legislative delegation have individual answers
to the problem.
It bodes ill for the prospects for politicians to rush to
Jefferson County's aid. The head of the commission that voted
for bankruptcy laid blame at the governor and state lawmakers
for not calling a special legislative session to raise taxes to
help the county, the state's most populous.
"We've had that happen so often in Alabama. The state punts
problems to the federal government or federal court," said Bill
Stewart, professor emeritus of political science at the
University of Alabama.
Since the early 1900s, Alabama has had an unusually strong
state constitution that holds sway over many matters determined
by cities, counties and towns in other states. Pointing to
amendments that cover mosquito control practices, bingo and
local bond issuance, critics argue that the power structure
stunts economic growth and promotes needless conflict.
Perhaps because of that, state officials are reticent to
interfere in local problems. Todd Stacy, communications
director for Republican House Speaker Mike Hubbard, said
traditionally in Alabama, local issues before the legislature
need to be thrashed out by lawmakers from the area involved.
"Lawmakers from outside Jefferson County are not going to
impose their will outside of the wishes of the Jefferson County
delegation," Stacy said.
INTERVENTIONS IN ALABAMA
In the late 20th century, lawsuits filed by Alabama
citizens in federal courts included ones to end racial
gerrymandering and to force the state to provide healthcare to
prisoners, according to the book "Alabama Getaway" by Allen
Tullos.
In 1963, George Wallace, the governor and noted
segregationist, attempted to block federal court orders to
integrate the University of Alabama and later, elementary
schools in Huntsville. It took the intervention of federal
marshals for the students to be admitted
Later lawsuits sought to fix standards of care for the
state's mentally ill.
One recent federal lawsuit wanted Alabama to change state
limits on property taxes that some poor counties claim cripple
local schools.
Now a federal court judge will determine how Jefferson
County will deal with its enormous debt.
"It's not something to brag about, like being number one in
football," Stewart said. "It's a national disaster, but it
hasn't sunk in yet."
While corruption, dysfunctional management and poor
decisions got the county into deep debt from financing a sewer
system upgrade, its tenuous fiscal situation was further hit by
a court ruling in March that voided its occupational tax.
The 0.45 percent tax on earnings had accounted for about
$70 million, or 44 percent, of the county's operating revenue
not already earmarked for other purposes.
Mark Griffith, a political science professor at the
University of West Alabama, said county officials worked hard
for a long time to try to resolve the problem and avoid
"kicking it to court."
Stewart said the inability of state lawmakers from
Jefferson County, who are divided along political party,
racial, and urban versus rural lines, to agree on a plan to
restore the revenue has stymied assistance from the state.
There were signs that the delegation may come together on
at least one issue - the court-appointed receiver for the sewer
system.
Meanwhile, Jefferson County's legislative delegation
unanimously approved a resolution supporting the county in
asking the bankruptcy court to remove John Young, the sewer
system's court-appointed receiver.
State Representative Paul DeMarco, the Republican co-head
of the House delegation, called the move the first step in the
process to resolve the county's problems.
"The commission made a decision to file for bankruptcy and
now that it's done we need to work with the commission in a
bi-partisan manner to get this resolved as quickly as
possible," DeMarco told Reuters.
Stewart said if Republicans who control the legislature
decide the county's bankruptcy will hurt the state, "they can
impose some discipline and get something done."
The case is In re: Jefferson County, Alabama, U.S.
Bankruptcy Court for the Northern District of Alabama, No.
11-05736.
For Jefferson County: Patrick Darby of Bradley Arant Boult
Cummings and Kenneth Klee of Klee, Tuchin, Bogdanoff & Stern.
(Reporting by Karen Pierog; Additional reporting by Melinda
Dickinson and Michael Connor)
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