Somewhere, Haley Barbour is laughing.

It's hard to find more rock-ribbed members of the Lawn Jockey Caucus of the Old Confederacy & Buffalo Commons Party than in George Wallace/Alabama. Here is what their adherence to free market GOPism has wrought:

In every part of Jefferson County — Alabama’s most populous county and its main economic engine — government managers have been scrambling to prepare for Saturday, when two-thirds of county employees eligible for layoffs — up to 1,400 — will be lost in an effort to stave off financial ruin.

“Outside of the city of Detroit,” said Robert A. Kurrter, a managing director with Moody’s Investors Service, “it’s fair to say we haven’t seen any place in America with the severity of problems that they’re experiencing in Jefferson County.” Moody’s rates Jefferson County’s credit lower than any other municipality in the country.

In July, the county asked Gov. Bob Riley, a Republican, to declare a state of emergency. Mr. Riley declined, delicately explaining that his authority extended to tornadoes but not to tsunamis of red ink.

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. Some of the county’s woes stem from the financial crisis that has pounded so many communities: its sales and property tax revenues are down by $40 million, and it borrowed billions in a sewer bond boondogglethat is the municipal equivalent of a subprime mortgage, using failed exotic bond deals and swaps concocted by investment bankers.

But the county has additional troubles: the sewer project was riddled with corruption, and in January a court ruled that a tax the county relied on for more than a quarter of its general fund was illegal because the Legislature repealed it in 1999.

State lawmakers could easily fix that problem by re-enacting the tax, but deliberations have dragged on even as the county has halted road maintenance, delayed opening a courthouse, announced plans to close half its customer service locations and asked department heads to submit the names of those who would be laid off on Saturday.