Doubts seen over Jefferson County Ala. debt plan

By Verna Gates

BIRMINGHAM, Ala., March 14 (Reuters) - Alabama's Jefferson County faces significant obstacles in trying to pass a plan to alleviate a crushing sewer debt of $3.24 billion, state legislators said.

Most county commissioners on Thursday praised the plan that would seek state authority to use excess sales tax revenues to help pay off obligations accumulated through interest-rate swaps based on bonds issued to finance the repair and expansion of its sewerage system.

Under the plan, excess money from an existing 1 percent sales tax pledged to secure county education bonds would be used to pay the debt, the county said.

But Alabama state law says any tax changes have to be approved by a county commission and then ratified by the state legislature. A powerful state legislator played down the chances that it would pass the latter step.

"We refuse to let them punish school kids for their mistakes. The chance of it (the proposal) passing is between slim and none and slim got sick and died yesterday." said John Rogers, an Alabama House Democrat who opposes the plan.

As co-chair of the Jefferson County delegation, a bill cannot go on the legislative calendar without his consent, legislators said.

A second state legislator also said the proposal would struggle to pass through the state body.

"It is the rules that every committee chair has the sole power to bring or not to bring a bill before us," said Patricia Todd, a representative of Jefferson county.