The Prince of Gracie Square and the Paupers of Jefferson County
Jefferson County, Alabama — which includes the city of Birmingham — is facing draconian cuts in county and municipal services that will affect thousands of people:
It is hardly unusual these days for a government building to forgo a fresh paint job or regular lawn care to cut costs. But last week, the director of the Jefferson County public nursing home was told that the county could no longer afford to bury indigent patients.
Across town at the juvenile detention center, the man in charge was trying to figure out how to feed the 28 children in his custody when the entire cafeteria staff is let go. The tax collector warned local school districts to expect a six-month delay to get their share of property taxes. In family court, administrators plan to delay child support, custody and child abuse cases, leaving some children in the hands of the state indefinitely.
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.
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Jefferson County, which includes Birmingham, could be compared to a person who has lost his job, watched his retirement investments evaporate and is stuck with a house that is worth less than what he owes the bank. Some of the county’s woes stem from the financial crisis that has pounded so many communities: its sales and property tax revenues are down by $40 million, and it borrowed billions in a sewer bond boondoggle that is the municipal equivalent of a subprime mortgage, using failed exotic bond deals and swaps concocted by investment bankers.But the county has additional troubles: the sewer project was riddled with corruption, and in January a court ruled that a tax the county relied on for more than a quarter of its general fund was illegal because the Legislature repealed it in 1999.
State lawmakers could easily fix that problem by re-enacting the tax, but deliberations have dragged on even as the county has halted road maintenance, delayed opening a courthouse, announced plans to close half its customer service locations and asked department heads to submit the names of those who would be laid off on Saturday.
Of course, it’s easy enough to feel sorry for an elderly woman living in a nursing home that’s about to be shut down due to budget cuts, but it takes a real prince chump to stand up for the families in New York City making $250,000 a year who are struggling to survive while the redistributive Evil Ones siphon off all their money to give to the poor.
13 Responses to “The Prince of Gracie Square and the Paupers of Jefferson County”
I was wondering when Jefferson County would start to receive national attention. This story is potatoes WITH gravy, and you've only scratched the surface. A few juicy tidbits:
1. As 900 county employess faced layoffs, two of the Jefferson County commissioners– who are both directly responsible for the crisis in JeffCo– decided to go out of town on other business as pink slips were being handed out. http://blog.al.com/spotnews/2009/07/commissione…
2. Larry Langford, who was president of the JeffCo Commission (currently Mayor of Birmingham, though he doesn't live there) and is also directly responsible for the county crisis, will be facing trial this month. The trial is the result of a federal investigation that has ended in a “quorum” of convicted county elected officials, among others. Other officials haven't been indicted yet, but we expect to see them soon. This includes both Democrats and Republicans and heavily involves investigation into bands, such as JP Morgan. http://www.bhamweekly.com/2009/07/31/leapin-lar…
3. Jefferson County is trying it's hardest not to file for bankruptcy, but it's all but inevitable. When this happens, it will be the largest municipal bankruptcy in U.S. history.
Of course, there's more to this, and it gets juicier the deeper you dig. It involves using various “charities” with the same address, gambling expeditions, over $40k in dental work, a gay porn star, and bringing cruise ships to Birmingham, AL (Look at a map!) just to name a few…
Thanks for all this, Almoderate.
Is it OK to siphon off all the 'excess' money from families making 100K? What is the cut-off to be 'evilly wealthy'? I ask, because roughly speaking, $100K a year in Birmingham is equivalent to $250K in NYC, where housing costs are over 450% more.
That is the problem with class warfare. What is 'rich' on place is middle-class in another, and what is 'poor' one place is middle class yet somewhere else.
Or do you propose means testing taxation, you know, something like, say, “From each according to his ability, to each according to his needs”?
@AustinRoth: Helping others is not “class warfare.” It is the proper way to live.
It is not “help” when you don't give them a choice.
Alabama's not Manhattan.
Alabama is America, though.
No, it's not. It's the C.S.A..
Birther Movement Just the Latest Southern Pathology
After they go broke, can we kick them out?
A commuter tax always turns into the engine or corruption. When taxing the middle class whites from the suburbs to fund government programs, there is no reason for restraint on the part of the government.
It is the same problem with the Democrats saying that only the top 5% will pay the taxes need for all new programs. People just do not care as much when the tax dollar are coming other people in other areas and from other ethnic groups.
I would also guess that Birmingham refuse to think about the ratchet effect. When money came in during a real estate boom or commuter tax, they would start programs that cold only be sustained during boom time economic conditions.
Very cute, Don.
Nice little snippet, but you might be surprised to know that Alabama, red state as it may be, had an unusually high percentage to vote Democrat this past presidential election. Birmingham– the center of the controversy in question– even voted overwhelmingly for Barack Obama. The current big story of public corruption involves New Jersey. And while JeffCo might file for the largest municipal bankruptcy in history, the current record is held by Orange County, CA. The moral of the story? Stereotypes aren't always so neat and pretty.
The current condition in JeffCo has little if anything to do with political persuasion toward the national Republicans. And like I stated, there have been members of both parties conviced for corruption in regards to Jefferson County. But the fact is, the major problem behind JeffCo's financial woes– the bond swaps which were “the municipal equivalent of a subprime mortgage”– happened under a Democratic majority in the county commission and under a Democratic president, Larry Langford. Locally, we're not so red.
Rather, the situation in JeffCo has more to do with the fact that the majority of active voters in Birmingham are, as nicely as I can phrase it, borderline retarded. If you don't believe me, consider that their mayor doesn't even live in Birmingham. He won by a slim margin, so there are a few in Birmingham I still have faith in, but he still won. This was also after he had a rather clear pattern of being elected to various offices and then driving said municipality to its knees in debt. He was also very publicly under investigation by the SEC at the time.
Unfortunately, since most of the local businesses are in JeffCo, this will affect the surrounding counties who work there and have actually had no real problems in their own counties. JeffCo is more heavily populated than the other counties, so at some point, I suspect that the state taxpayers will have to bail them out.
And it also looks like Artur Davis may be our next governor. I have no idea what those who cling to stereotypes regarding our state will do when we elect a black Democrat who happens to be an old college buddy of the current POTUS. It helps, I suppose, when your main source of information on our state isn't based off of what Harold and Kumar showed you.
Now, I'll agree that we have more than our fair share of ill-informed and racist Bible-thumping Old Southers. If you don't believe me, do a Google search on “Alabama” and “wine label.” But they tend to be the older generation on their way out. Our younger generations are more liberal and more independent and better informed, but they vote less, which officially makes us like the rest of the United States. We have electricity, too!
As for Dems and taxes, superdestroyer, you might be surprised to learn that the main person trying to shove the JeffCo occupational tax down our throats is the current commission president, Bettye Fine Collins, a Republican. She was also one of the ones who decided to leave town on other business and (attempt to) hide from the press while the county handed out pink slips. Stupidity and selfishness has no party affiliation. Not in Alabama.
Since it's been brought up a few times above….
A judge ruled that Langford was a resident of Birmingham.
For those who don't follow Bham politics…. Langford lived in a suburb of B'ham (and even served a short time as a mayor). He decided to run for mayor of B'ham so he rented a condo downtown, establishing residency.
Though his mail continued to go to his old address and he even kept his dogs at the old address (the B'ham condo's landlord wouldn't allow dogs). Also his “new neighbors” in B'ham never see him….
That's why many people believe that he doesn't really live in B'ham, even though a judge ruled otherwise.
I'll let you form your own opinion on that.
But Langford is a nut.
JeffCo and B'ham would be much better off with some new leaders- Dems and Repubs.
Almoderate said it best, “Stupidity and selfishness has no party affiliation. Not in Alabama.”
Hey Almoderate welcome and thanks for the insights. I buy municipal bonds now and then and have been following the story ever since I noticed the huge discounts on JeffCo bonds. I feel bad for the people who were innocent in this but overall it looks to me like they've made their own bed and now are feeling the consequences.
Almoderate,
What Jefferson County is going through now is what the U.S. has forward to as it becomes a one party state: The expansion of entitlements while trying to stick others with the bill. Birmingham is 73% black which means that politicans keep control by promsing to tax whites and spend the money on blacks. Thus, a commuter tax on employment is an easy sell.
I also looked up the problems with the sewer upgrade and it looks like minority contracting was more important than hiring capable firms.
“I also looked up the problems with the sewer upgrade and it looks like minority contracting was more important than hiring capable firms.”
No, it had more to do with bribery, as a jury decided. I will say that at least two white Republicans were involved and convicted in regards to various dealings with the sewer. One, Mary Buckelew, sold out for a mere trip to the spa, a bag, and some shoes if I recall correctly. Not to mention, current county commission president (and one of the people calling for the reinstatement of the occupational tax) Bettye Fine Collins is also a white Republican and represents one of the Jefferson County suburbs, Trussville, which is mostly white.
And yes, a judge did determine that Langford was legally a resident of Birmingham (on intent or something like that), but yes, he continues to live in Fairfield. I suppose it could be left to each person as to how exactly you'd define “resident.” Plenty of Birmingham apartments and houses allow pets, so if you're seriously considering moving there (instead of buying a “placeholder”), why not get one?