Alabama Area Hit Hard in Face of U.S Recession

BIRMINGHAM, Ala. — It is hardly unusual these days for a government building to forgo a fresh paint job or regular lawn care to cut costs. But last week, the director of the Jefferson County public nursing home was told that the county could no longer afford to bury indigent patients.

Across town at the juvenile detention center, the man in charge was trying to figure out how to feed the 28 children in his custody when the entire cafeteria staff is let go.

In family court, administrators plan to delay child support, custody and child abuse cases, leaving some children in the hands of the state indefinitely.

Jefferson County, which includes Birmingham, could be compared to a person who has lost his job, watched his retirement investments evaporate and is stuck with a house that is worth less than what he owes the bank.

Florida's welfare rolls grew 15.2 percent over the past year, according to the latest data, a trend many economists say will continue even after the recession ebbs.

More than 56,700 families received state welfare aid in July. That's up from 49,257 families during the same month last year, state data shows.

"What we are seeing is what we expect to see," said Don Winstead, deputy secretary of Florida's Department of Children and Families. "Given the economic situation in the state, you would expect to see more working-age adults with children needing help."

Florida has become accustomed to tough economic indicators. Unemployment hit its highest point in 34 years last month. Growth has stalled, and foreclosure continues to shutter thousands of homes each month.

Economists expect the unemployment rate to stay high even after the recession ends, so a respite does not seem likely in the near future, said University of Florida economics professor David Denslow.

"The surprise would be if the recovery in jobs turns out to be more rapid than economists are expecting," Denslow said. If unemployment remains high or rises after the recession ends, he said, the welfare rolls could continue to expand.

Economists vary widely on when the national market will generate more jobs. Optimists predict within the next year. A more grim outlook postulates as late as 2012.