Business leaders in Birmingham, Alabama, the largest city the state and in Jefferson County that was just granted Chapter 9 bankruptcy protection are bracing for the fallout that is certain to follow such a large and public financial debacle.
Both businesses and residents are bracing for increases in utility rates and cuts in services that will erode the already weak attractiveness as a place to expand or establish a business.
Jefferson County has already enacted massive budget cuts of nearly $100 Million from a budget of just over $300 Million and laid off hundreds of civil servants. The Wall Street Journal reports that some citizens welcome the bankruptcy as a “lancing of a boil” that had to happen before Jefferson County could move forward in a positive and sustainable manner.
One car wash owner shared the fact that the utility bill for his Birmingham based facility is already 20% higher than one in a neighboring county making it difficult to make a profit and prohibitive to expand in Birmingham. Economic development leaders who recently attracted two businesses from Florida are quite concerned that the “sales pitch” will be tainted by what has happened.
http://online.wsj.com/article/SB10001424052970203537304577030522343960712.html?KEYWORDS=birmingham
