Alabama is not a “home rule” state. The relationship of the state government to cities, counties and local school systems is basically that of parent to child. The state has given cities much freedom to operate, but it retains lots of control over counties and school systems. While the 132 school systems receive the kind of supervision appropriate to such a relationship, the state of Alabama is a neglectful parent to its 67 counties.
School systems operate under the guidance of a state Board of Education, chaired by the governor, and the oversight of an appointed state superintendent. When the state superintendent determines that a school system is in fiscal trouble, he or she has the power to appoint a financial adviser. The state board can authorize complete financial control if the situation doesn’t improve. These powers employ standards that raise the bar for local performance and assure taxpayers the state intends to maintain financial stability in public education.
The state sets only minimal financial standards for county governments and has no administrative agency to monitor performance. The Jefferson County Commission in recent years borrowed billions of dollars, using complex borrowing techniques and negotiated pricing, without any state oversight. County officials have been convicted of wrongdoing in dealing with funds. County financial statements have deteriorated to the point that the state’s chief examiner (a legislative official) recently refused the governor’s request to audit the county’s books.
Despite the fact that these events are occurring in the state’s largest county, there has been no serious talk of the state intervening. The state has no method for doing so. If Jefferson County had been a North Carolina local government, then it could not have borrowed money without approval from the Local Government Commission (LGC), chaired by the elected state treasurer. The LGC implements budgetary, accounting, auditing and borrowing standards in state law that apply to every local government. Financial advisors are selected and bonds issued, under state supervision. Decisions are made in public. Sounds like good parenting to me.
EDITOR’S NOTE — Jim Williams is executive director for the nonprofit, nonpartisan Public Affairs Research Council of Alabama.
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