Residents Soldier On as Alabama County Mulls Bankruptcy

Residents of Jefferson County, Ala., whose commissioners could decide to file the largest municipal bankruptcy in U.S. history on Thursday, are well-acquainted with their local government's financial mess.

Services ranging from police response to traffic accidents to the number of security officers for courtrooms already have been cut back. Last month, the county, the state's most populous, laid off nearly 550 workers.

"There are no roads being repaired. If a traffic light goes out, it may stay out for a real long time," said Kevin Hughins, a systems analyst for the county's information-technology department and president of the Jefferson County ...

Copyright 2011 Dow Jones & Company, Inc. All Rights Reserved

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit

www.djreprints.com

Available to WSJ.com Subscribers

  • Heading for 'Haircut' in Repo Market

    The debt stalemate in Washington is creating stress in a little-known but vital corner of the bond market, increasing the risk that banks, hedge funds and other investors will have to pay billions of dollars in additional costs if the U.S. defaults or is downgraded.

  • Iran's Sanction Fight Reshapes Wealth