Bail out could help Jefferson County

By By Bob Martin, The Alabama Scene
Gov. Bob Riley and Jefferson County officials are attempting to add a new twist to the Wall Street bail out…$2.7 billion of the Jefferson County sewer debt.
But will it work? The $700 billion federal bail out was designed to buy troubled mortgage-related assets from financial institutions in order for them to unburden their portfolios and loosen the credit market. The governor, however, references a section added by Congress, allowing institutions to buy insurance for those assets instead.
According to The Birmingham News, the governor's pitch is that the mortgage crisis triggered the credit downgrades of the county's bond insurers, which in turn caused huge spikes in debt service payments, and therefore the county should qualify for any mortgage-related rescue.
He also appealed to Treasury's interest in the health of the overall municipal finance market and the pocketbooks of Jefferson County sewer ratepayers. And he pointed a finger at the U.S. Environmental Protection Agency for mandating the massive sewer improvements in the first place.
A paragraph of the new law does require Treasury to consider the stability of counties and cities in implementing the rescue. However, many are skeptical that the bail out will reach far enough to help Jefferson County, including Rep. Artur Davis, who told the News that the bail out is "not an all around 'if you need help from the government, come and get in line' piece of legislation," adding that "the uncertainties around this issue are yet another reason Jefferson County should resolve its situation in the best available manner instead of expecting a magical solution to materialize."
Governor halts proposed LNG terminal
Gov. Riley has rejected plans by a Texas company for an offshore liquefied natural gas terminal in the Gulf of Mexico, saying that when there is scientific evidence that a project will harm the environment then that is something that shouldn't be permitted.
Riley announced Thursday that he has rejected the proposal by a Texas company for a site about 60 miles south of Fort Morgan. In a statement, Riley said he was extremely concerned about the $500 million project's potential detriment to marine life with a new "open-loop" process
Riley said he believes the potential benefits of the proposed liquefied natural gas (LNG) terminal do not outweigh the consequences such a facility could have on our coastal environment. The proposed terminal would have accepted natural gas chilled to minus 260 degrees, called LNG. With the open-loop technology, massive amounts of seawater would be used to convert the solid gas to liquid gas; a process fisheries experts say would devastate fragile sea life. The governor said he was not opposed to an LNG project in the Gulf, but not one with the "open-loop" technology."
I believe the governor should be congratulated for vetoing such a project that would be harmful to our coast and its marine life.
Protecting the public's right to know
Montgomery Circuit Judge Gene Reese has ruled that the medical records of a state prison inmate who died after pleading guilty to killing two Athens police officers in January of 2004, must be made public. The prisoner died in a Montgomery hospital 12 days after his transfer into state custody. The prisoner was said to be in good health when he arrived at Kilby Prison just outside the capital city, but four days later he was rendered unconscious and taken to a hospital where he died.
The prisoner's mother demanded information about the death, but when the state stonewalled her effort, she filled a lawsuit. Her attorney called the state's opposition "wrong as a matter of law, wrong from an ethical perspective and contrary to the ideals of transparency and open government."
Judge Reese agreed and ordered the records released. Newspapers referred to his ruling as "a victory for the public," and opined that "nothing about this case meets state criteria for withholding information about inmates."
Bob Martin is editor and publisher of The Montgomery Independent. E-mail him at: bob@montgomeryindependent.com