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Jefferson County, Ala. commenced plans to put nearly 1,000 employees on administrative leave to avoid the largest-even municipal bankruptcy.This comes after an emergency tax measure, which would have raised $50 million, was blocked last Thursday in the state senate.
Commissioner Jimmie Stephens tells The Bond Buyer: “Without the reduction in [work] force there would be no alternative. What we’re trying to do is keep operating within the cash-flow constraints in order for government to function and for us to meet out debt-service requirements. Based on my projections, we will be able to do both.”
Placing employees on leave will trim the budget by around $12 million, which means Jefferson will need to make additional cuts. For many administrative leave will turn into a layoff.
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