Montgomery City Council Overrides Mayor’s Veto on Jackson Hospital Funding, Approves New Traffic Program to Assist MPD
MONTGOMERY, Ala. (WAKA) — The Montgomery City Council voted Tuesday to override Mayor Steven Reed’s veto and move forward with funding to help keep Jackson Hospital open.
Earlier this month, the council unanimously approved $15 million for the financially struggling hospital. Mayor Reed vetoed the measure, saying he wanted Montgomery County to contribute more money.
On Tuesday morning, the Montgomery County Commission agreed to provide $10 million in funding. Tuesday evening, the City Council voted unanimously to override Reed’s veto and amended the ordinance to say the city will provide up to $15 million to the hospital rather than guaranteeing the full amount.
The updated language also removes a previous provision that required the city to cover the majority of the $25 million the hospital needs from local government to stay open. Removing the guarantee that the city will pay 60% of the $25 million funding split with the county, allows for other funding that might come to the table.
Residents voiced both support and opposition before the vote.
“If we close that hospital, and you have a loved one that gets injured and there’s nowhere to go and they’re sitting out in the ER waiting to see a physician or to get in a trauma unit, you’re going to be devastated,” said Angela Exford, a Montgomery resident. “All nine of you hold the citizens in your hands with this vote.”
Another resident said, “Let’s just be honest. Jackson Hospital did not get here overnight. This has been a problem for years of mismanagement… If we’re going to step in and save it, we need to make sure we are not rescuing the same problems that sank it.”
“After talking to County Commission President Doug Singleton, I think we’re in a better place,” Reed said. “We have a good opportunity to move forward with this initiative and with this partnership.”
Jackson Hospital filed for Chapter 11 bankruptcy protection in February after missing a $60 million bond interest payment last year. City and county funding is expected to cover only part of the hospital’s financial needs. The hospital is also seeking $25 million in state funding and $50 million in federal funds to improve its neonatal intensive care unit, emergency department and cancer facilities.
Last week, a federal bankruptcy judge in Montgomery approved a loan that officials say will help keep the hospital open through the holiday season. The hospital’s Debtor-In-Possession (DIP) loan was extended from $22 million to $35 million. Jackson Investment Group announced that it will add an additional $15 million on top of the court approved loan.
Council Approves Pilot Program to Ease Police Workload
In other business, the council unanimously approved a pilot program to assist the Montgomery Police Department with traffic accidents.
The new program, called TrafficServe, will use private officers to respond to minor wrecks and help direct traffic during peak hours. Three units, each with two officers, will operate five days a week using company vehicles.
Police Chief James Graboys said the program will allow MPD officers to focus on higher-priority calls.
“They would handle the non-criminal aspects of traffic control and accidents,” Graboys said. “That would allow us to put more units in other places.”
According to the city, funding for the program will come from leftover “fallout funds” from last year’s city budget.
The council also tabled an ordinance that would authorize the mayor to execute certain contracts without council approval and withdrew a controversial measure that would limit how often citizens can address the council on the same topic.
