Sunday, May 18, 2008

more from Jefferson County

More on the financial crisis in Jefferson County, AL: Jefferson County OK's Forebearance Extension. Why care? It's interesting for lots of reasons. The debt in Jefferson County is higher than for the city of Pittsburgh for sure, but when you add up all debt and work it out per capita you get some more similar or worse numbers. Also in that article I see that some of the debt is causing them problems is because they were issued in the auction-rate securities that caused UPMC such problems recently. I still wonder when the bond holders, bond insurers, and reinsurers will become part of the mix in the city's Act 47 process here.

Now tie the city's debt issue with the story yesterday of natural population decline and you can see where some real issues will be in local public finance, here and elsewhere.