Alabama's Jefferson County, still reeling from a deal to finance a sewage system that has left the county deeply in debt, will put a third of its workers on unpaid administrative leave in an attempt to save money.
The move aims to patch a $9 million per month budget shortfall stemming from a lack of tax revenue, country commission president David Carrington told Reuters. That amount is separate from the $3.2 billion the city still owes for the sewage system.
In placing 967 workers on leave, the county is seeking to pare back the approximately $12 million a month it spends on payroll.
The county agreed to finance the sewage system through a deal with J.P. Morgan Chase that relied on derivatives, and the collapse of the subprime housing market led Jefferson to default.