Blocked N.Y. Tobacco Tax Law Won’t Affect Seneca Bonds: S&P

The fate of a New York law that would impose taxes on certain tobacco sales on Indian reservations won’t impact tax-exempt bonds issued to finance Seneca Nation projects, a Standard & Poor’s analyst said.

Trend in the Region

New Model Sought for Calif. Water Agencies

Study Urges New Bond Overseer

MENLO PARK, Calif. — An independent study calls for California to overhaul management of its water supply system and give a newly created commission oversight of billions of dollars of bond money.

Hospitals Hope to Make Detroit a Medical Nexus

CHICAGO — Detroit-area hospitals plan to spend up to $1.3 billion on capital projects over the next several years in the hopes of creating a medical industry to help replace the city’s vanishing manufacturing base, according to a new report.

Moody’s Raises California Vets GOs to Aa2

MENLO PARK, Calif. — California veterans general obligation bonds Thursday landed a ratings upgrade to Aa2 from Moody’s Investors Service, affecting $1.17 billion of outstanding debt.

New Jersey TTFA Approves $1.4B Deal, Likely With BABs

The New Jersey Transportation Trust Fund Authority on Thursday approved a $1.4 billion new-money and refinancing deal that will most likely include taxable Build America Bonds.

N.Y. Comptroller Requires Boost in Pension Contributions

New York state and local government employers will have to increase average pension contributions to 16.3% of salaries from 11.9%, Comptroller Thomas DiNapoli announced Thursday. He also lowered the assumed rate of return on pension fund investments to 7.5% from 8%.

Cuts Needed to Keep Surplus

Montana’s budget is running in the black, unlike many states crippled by the sluggish economy, but the state still will have to make stiff cuts to maintain its balanced budget as tax collections fall, Gov. Brian Schweitzer said Wednesday.

To Disincorporate, or Not

Half Moon Bay, like many cities in California, has been struck with falling revenue and high costs amid the dour economy.

RDA Fund-Shift Case Appealed

The California Redevelopment Association Monday submitted its opening brief for its appeal of a trial court decision upholding the state’s shift of more than $2 billion from local redevelopment agencies to help balance the budget.

Student-Loan Cash Cow Dies

The federal government has formally announced an end to California’s role servicing guaranteed federal student loans, bringing an end to a program that state budget writers had viewed as a billion-dollar cash cow.

TD Bank Could Sue Harrisburg

City Set to Miss Debt Payment

Dauphin County Wednesday authorized TD Bank to pursue legal action against Harrisburg, as Pennsylvania’s capital city said it will not meet payments due Dec. 15 on $35 million of incinerator bonds. [FREE]

Clock Runs Out on California Bills

ALAMEDA, Calif. — A bill to limit the ability of California local governments to file for bankruptcy expired Tuesday in the last-minute frenzy that marked the end of the regular 2010 session for the state’s stalemated Legislature.

Trend in the Region

GO Zone Cut-Off Looms for Issuers

States Still Have Billions to Sell

BRADENTON, Fla. — Three Gulf Coast states are trying to beat the deadline to sell billions of dollars of private-activity bonds allocated by Congress in the 2005 Gulf Opportunity Zone Act. [FREE]

New York MTA Delays Underwriter Oral Presentations for a Month

New York’s Metropolitan Transportation Authority has delayed for a month oral presentations in the selection of underwriters and swap counterparties, the agency confirmed Wednesday.

Kansas Buoyed as August Revenues Come in 10% Higher Than Forecast

DALLAS — Kansas general fund revenue came in 10% higher than expected in August, which Gov. Mark Parkinson called “another clear sign” the state’s economy is beginning to recover.

FutureGen Alliance Commits to Illinois Power Project

CHICAGO — The revamped $1.2 billion clean coal FutureGen project advanced this week after a coalition of coal and power companies announced its commitment to the revised plan to build a pipeline and underground storage facility in Illinois to house emissions from an existing coal plant.

Manchin Wins Senate Primary

West Virginia Gov. Joe Manchin, a Democrat, easily won the party nomination for a U.S. Senate seat Saturday with more than 73% of the votes cast in the primary.

Zachary Schools Set GO Deal

Trustees of Zachary Community School District No. 1 voted Monday to set a Nov. 2 election for $40 million of general obligation bonds.

Jobless Rate Dips to 9.9%

Kentucky’s unemployment rate dropped to 9.9% in July from 10.8% a year earlier.

S&P Junks Memorial Health

Standard & Poor’s lowered its rating to BB-plus from BBB-minus on bonds issued by the Chatham County Hospital Authority on behalf of Memorial Health University Medical Center Inc.

Pricey Courthouse Audited

Florida Chief Financial Officer Alex Sink has ordered a comprehensive audit of funds spent by the state to build a new $40 million courthouse for the First District Court of Appeals.

Cabinet OKs $683M Issue

The Florida Division of Bond Finance received approval to sell $683 million of refunding bonds from the state’s elected Cabinet last week.

Atlanta Reaches Deal With Airlines

BRADENTON, Fla. — Atlanta announced a lease agreement with airlines Tuesday that should enable the city to move forward with a long-awaited financing for Hartsfield-Jackson Atlanta International Airport.

Texas Readies $1B of Prop. 12 Debt

DALLAS — Less than two months after a record $1.5 billion deal, the Texas Transportation Commission is preparing another $1 billion issue of general obligation bonds.

Rhode Island Gov. Supports Embattled $75M Bond Proposal

Rhode Island Gov. Donald Carcieri on Tuesday blasted the state treasurer for attempting to halt a $75 million taxable bond deal.

Pennsylvania Lawmakers Still in Stalemate Over Transportation

Both Democratic and Republican lawmakers in Pennsylvania agree that the state needs a long-term transportation funding strategy, but have yet to find consensus on how the state should pay for roads, bridges, and public transit.

Philly Treasurer Rhynhart to Become Budget Chief

Rebecca Rhynhart will leave her current position as Philadelphia’s treasurer and replace former budget director Stephen Agostini beginning Nov. 1.

Reno Officials Will Weigh Options for Avoiding Casino Debt Default

MENLO PARK, Calif. — The Reno City Council meets next week to discuss how the Nevada city can avoid defaulting on bonds backed by a lease with a defunct casino.

Nixon Peabody Makes Attorney Kenneth Lind a Partner

Public finance attorney Kenneth Lind was made partner at Nixon Peabody LLP, the firm announced Tuesday. Lind has served as bond counsel at the firm’s New York City office since leaving the state Metropolitan Transportation Authority in January 2008, where he had been acting finance director.

Deal in Focus

Indianapolis Set to Follow Sewer Sale With Parking Meter Lease

CHICAGO — A month after winning city and county approval to sell its water and sewer system, Indianapolis stands poised to enter into a 50-year lease of its parking meters in exchange for cash and a piece of the annual parking revenue.

St. Paul Port Authority, Lawyers Argue Over Use of Pledged Assets

CHICAGO — The St. Paul Port Authority and lawyers for a group of 876 fund bondholders squared off in Ramsey County district court Monday over whether the agency has misused revenue generated from assets pledged to bondholders.

Budget Panel: Help Us

The Ohio Budget Planning and Management Commission — a bipartisan panel charged with crafting recommendations on how to solve an $8 billion shortfall in the 2012-2013 state budget — is asking the public for help.

Moody’s Drops Hospital

Moody’s Investors Service this week downgraded the underlying rating of Marietta Area Health Care to Ba2 from Ba1. Washington County issued the debt on behalf of the hospital.

St. Louis Metro Taps Nations

The St. Louis Metro transit board last week announced its pick of Chesterfield Mayor John Nations, who is also a partner at the law firm Armstrong Teasdale, as the agency’s president and chief executive officer.

Pension Funds Eye Selloffs

Illinois’ public pension funds are warning they may have to sell off some assets — mostly stocks and bonds — because the state is behind in its payments to the funds.

Daley: TIF and Privatize

Chicago Mayor Richard Daley last week said he is considering tapping surplus tax-increment financing revenue and privatizing a handful of prominent city services and events in an attempt to whittle down a $655 million shortfall in the 2011 budget.

Universities Face Pressure

Illinois’ public universities have now received all or most of their fiscal 2010 state aid appropriation — a credit positive for the schools — but ongoing liquidity strains are expected until the state solves its budget crisis, Moody’s Investors Service said Monday.

Rhode Island Treasurer Opposes $75M Bond Issue

Rhode Island Treasurer Frank Caprio on Monday urged Moody's Investors Service to withhold its rating on a $75 million taxable bond deal that would finance the relocation of a video game company headed by former Red Sox baseball player Curt Schilling.

Watchdog: Big Bill in Illinois' Cards

Due to the erosion of its general obligation debt ratings, Illinois will pay $551M of additional interest costs to retire $9.6B of bonds sold between last September and July, a Chicago-based government watchdog organization concluded in a report released Monday. [FREE]

California Lawmakers to Vote on Budget Again Before Adjourning

California lawmakers are planning to hold budget votes Tuesday, the final day of their regular session, though no one expects a budget bill to pass.

Harris County, Texas, Sees Active Market for Flood Debt

With soaring demand for top-rated, tax-exempt munis, Harris County, Tex., expects strong results Tuesday in its pricing of $205 million of tax-backed refunding bonds, according to the county's financial services director. [FREE]

Moody's Drops Mass. Hospital Ahead of Major Expansion Deal

Moody's Investors Service Monday downgraded Lowell General Hospital in Massachusetts to Baa1 from A3 as the health care provider plans to increase its debt load dramatically to help finance a new patient tower. The outlook is stable.

DEAL IN FOCUS

Texas Sports Agency Flirting With Default

Stadium Builder Has $988M of Debt

The Harris County-Houston Sports Authority, the builder of three professional sports stadiums, could default on some of its $988 million of debt as early as March 2011, according to calculations by Moody's Investors Service. The danger of default was detailed late last week when Moody's downgraded three underlying authority credit ratings to junk-bond levels. [FREE]

Tennessee Authority Readies $245M for Higher Education

The Tennessee State School Bond Authority plans to competitively sell $245 million of tax-exempt and taxable higher education revenue bonds Wednesday.

CCISD to Vote on $125M

Corpus Christi Independent School District will build two new schools if voters sign off on a $125 million general obligation bond referendum on Nov. 2.

Logan Debt Nixed Big-Time

A proposal by Logan County Independent School District No. 1 for $89.8 million of lease-revenue bonds was rejected last week by almost 78% of those voting.

'Driveway Tax' Derided

The Kansas chapter of the National Federation of Independent Businesses said last week it was "shocked and disappointed" at a city's imposition of a transportation utility fee on property owners based on how much traffic the property generates.

More School Aid Sought

Arkansas' joint adequacy evaluation oversight subcommittee has proposed a 2.5% increase in state funding for local school districts in fiscal 2012 and another 2.9% hike in fiscal 2013.

Cubs Play Bond-Boosters

The Chicago Cubs will campaign strenuously in favor of a financial package to keep the team's spring training operations at its long-time home of Mesa. A vote on the proposal is set for the general election on Nov. 2.

Candidate Urges Audits

Andrei Cherny, the Democratic candidate for Arizona treasurer, said if elected he would use the office's authority to audit government spending from the Legislature down to the local level.

Scottsdale Eyes $28M Gap

Preliminary budget numbers for fiscal 2012 outlined for the Scottsdale's budget review commission last week indicate the city may be facing a $28.4 million revenue shortfall.

Chicago Mayor Taps Loop CEO to Lead Housing Authority Board

CHICAGO — Chicago Mayor Richard Daley on Friday announced his intention to appoint Loop Capital Markets LLC’s chief executive officer James Reynolds Jr. to serve as chairman of the Chicago Housing Authority’s board.

Kopp Keeps Maryland on Track

Treasurer Key to Fiscal Oversight

WASHINGTON — As Maryland’s treasurer, Nancy K. Kopp has steered the state through the recession from her position on a financial oversight board, ­wielding the knife for spending cuts with a greater authority than other state treasurers.

Nebraska May Sell Road Debt for the First Time Since ’69

CHICAGO — The last time Nebraska issued bonds to finance highway projects was the summer of 1969. But five years of falling road revenues have prompted lawmakers to give borrowing a fresh look.

Voters to Face $459.7 Million of GOs For Texas’ Rapidly Growing Katy ISD

DALLAS — The Katy Independent School District in Texas is seeking voter approval of a $459.7 million general obligation bond package that would finance construction of five new schools to accommodate its rapidly growing enrollment.

N.Y.C. Islamic Center Developer To Seek $70M of Tax-Exempts

The developer of an Islamic cultural center in Lower Manhattan will seek $70 million of tax-exempt bond financing to build the new $100 million facility modeled after religiously affiliated community organizations like the YMCA or New York’s 92nd Street Y, according to a news report.

HUD Puts Philadelphia Housing Authority Under the Microscope

The U.S. Department of Housing and Urban Development is auditing financial and management operations at the Philadelphia Housing Authority in the wake of allegations it asked vendors to donate to certain charities and events benefitting its executive director, Carl Greene.

Oregon Faces 3% Revenue Decline; Governor to Ask Agencies for Cuts

MENLO PARK, Calif. — Oregon’s budget woes have worsened with the state economist’s office forecasting a more than 3% drop in revenue due mainly to a dearth in tax collections.

St. Paul Port Authority, 876 Fund Lawyers Set for Court Hearing

CHICAGO — The St. Paul Port Authority and lawyers for a group of 876 Fund bondholders will appear at a court hearing Monday on their dispute over the fate of $51 million of outstanding bonds backed by the struggling economic development fund.

Trend in the Region

N.Y.’s New Authority Watchdog Is Aiming for Near-Term Growth

At a time when government is shrinking, the new office overseeing New York’s public authorities is looking to expand. The Authorities Budget Office, created under reform legislation last year, wants to add four new staff members in the near term as the agency writes regulations over the next six to eight months.

Central Falls Fights Back

The Central Falls City Council plans to hire a lawyer to challenge the authority of its state-appointed receiver, according to news reports.

Penn’s Clean-Energy Team

Pennsylvania State University will receive up to $122 million of federal funds to lead a team to develop energy-efficient technologies for buildings.

DRPA Derivative Reforms

The Delaware River Port Authority last week approved additional management reforms as the agency looks to terminate $53 million of a $403 million derivative associated with its debt.

Education Chief Ousted

New Jersey Gov. Chris Christie Friday fired Bret Schundler as education commissioner after a video showed that Schundler did not provide federal officials with requested information in the state’s submission for federal Race to the Top funds, even though Christie had previously insisted he did.

Moody’s Wants Muni Issuers to Cover It For Any Rating Challenges

WASHINGTON — Moody’s Investors Service is pushing state and local issuers to agree to indemnify and hold it and its officers harmless for any mistakes they might make as a precondition to assigning ratings on municipal bond transactions, market participants said Thursday. [FREE]

California Lawmakers Weigh Hundreds of Bills as Adjournment Nears

ALAMEDA, Calif. — California lawmakers are rushing through hundreds of bills as they face a looming deadline to adjourn their 2010 session. [FREE]

N.Y.-N.J. Port OKs WTC Financing, Clears Way for $2.59B Liberty Deal

The Port Authority of New York and New Jersey on Thursday approved a financing agreement on World Trade Center development that clears the way for the refunding of $2.59 billion of escrowed Liberty bonds next month.

Mississippi Lawmakers Face $50M of Bonds for Biofuels Company

BRADENTON, Fla. — The Mississippi Legislature was expected to be in a special session today deciding whether to approve $50 million of bond financing and other incentives for a biofuels company.

Florida Bridge Authority’s GIC Provider Wants Out

BRADENTON, Fla. — The Santa Rosa Bay Bridge Authority in northwest Florida has been notified that its guaranteed investment-contract provider wants to terminate its contract, according to authority attorney Roy Andrews.

Blagojevich Faces Second Trial as Sole Defendant

CHICAGO — Former Illinois Gov. Rod Blagojevich faces a second federal trial on corruption charges early next year and will stand as the sole defendant following the prosecution’s announcement Thursday that it would drop charges against his brother, Robert Blagojevich.

Orleans Parish Schools to Get $1.8 Billion From FEMA

DALLAS — The Federal Emergency Management Agency will make a $1.8 billion lump-sum payment to public school districts in Orleans Parish to rebuild or replace facilities damaged five years ago by Hurricane Katrina. The parish has the same boundaries as the city of New Orleans.

Ohio Offers New Bond Program to Help 2-Year Colleges Save

CHICAGO — Ohio has launched a new bond program aimed at lowering borrowing costs for two-year colleges across the state.

S&P Negative on Bell, Calif., Redevelopment Bonds

ALAMEDA, Calif. – Standard & Poor’s Thursday placed Bell, Calif.’s redevelopment agency bonds on negative CreditWatch, marking the latest setback for the small Southern California city in the wake of revelations of its unusual financial practices, which included paying its former city administrator almost $800,000 a year.

School-Bond Backer Gets Affirmed

Fitch Ratings on Friday affirmed the Oregon School Bond Guaranty program at AA-plus with a stable outlook. The affirmation is part of Fitch’s continuous surveillance effort.

New Man for College Savings Plan

Nevada Gov. Jim Gibbons Monday announced the appointment former Treasurer Robert Seale to the board that oversees the state’s college savings plans program.

L.A. Mayor Touts 30/10 Transit Plan

Los Angeles Mayor Antonio Villaraigosa advocated his “30/10” plan to accelerate transit project construction at a roundtable event Tuesday he co-chaired with U.S. Sen. Barbara Boxer.

Energy Operator Gets Upgrade

Moody’s Investors Service Monday upgraded $327 million of debt issued for the California Independent System Operator to A1 from A2.

N.Y. Looks to Price $1.66B of PIT Debt

New York plans to price two delayed personal income-tax bond deals totaling $1.66 billion over the next two months. [FREE]

Deal in Focus

Alabama City Is in The Hunt

Huntsville to Price $174M of Warrants

BRADENTON, Fla. — Gilt-edged Huntsville in northern Alabama plans to price $174 million of new-money and refunding general obligation capital improvement warrants on Wednesday.

Michigan’s Clark Hill Hires Veteran Robert Schwartz

CHICAGO — Birmingham, Mich.-based law firm Clark Hill PLC has hired veteran attorney Robert Schwartz to expand its public finance practice.

Chicago Board of Ed Adopts $6.5 Billion Budget Including Debt Restructuring

CHICAGO — The Chicago Board of Education late Wednesday adopted an amended $6.5 billion fiscal 2011 budget after the district’s administration scraped plans to fully wipe out reserves to help eliminate a $370 million deficit by instead restructuring some debt.

Puerto Rico Needs to Curb Employee Benefits: Report

Puerto Rico should consider cutting employee benefits, boosting employee contributions and implementing a special tax to shore up its pension system, according to a report Wednesday from the Center for the New Economy.

Virginia Toll-Lane Suit Adds Federal Official as Defendant

WASHINGTON — A northern Virginia county suing federal and state transportation authorities over certain environmental exemptions for planned high-occupancy toll lanes on two interstate highways has asked the court to add another federal official as a defendant.

Harrisburg City Council Tables Two Nominees as Standoff Persists

The Harrisburg City Council Tuesday night tabled two nominees to the Harrisburg Authority’s board, continuing a political standoff with the mayor that has left the board without a quorum and bondholders with an uncertain future.

Lubbock, Tex., Schools Ready to Go If Voters OK $198M Debt Plan

DALLAS — The Lubbock Independent School District will embark on a four-phase capital improvement program if voters approve a $198 million bond program developed by a citizens’ committee.

NOLA Hospital’s New Birth

New Orleans Mayor Mitch Landrieu said renovation efforts will begin soon on a storm-damaged hospital purchased late last week by the city for $16.3 million.

Finalists for Airport Chief

Atlanta Mayor Kasim Reed announced Monday that three finalists are being considered to become general manager at Hartsfield-Jackson Atlanta International Airport.

High-Speed Rail Meetings

The Florida Rail Enterprise, a division in the state Department of Transportation, holds public information meetings next week on the first phase of the state’s high-speed rail program, from Tampa-to-Orlando, which is estimated to cost $2.6 billion.

And the Winners Are ...

Florida and New York on Tuesday tied for the highest amount, $700 million each, in the second round of federal funding for the Race to the Top competition. Georgia and North Carolina each won $400 million in the education reform program.

Gulf States Ready 4 Takeoff

Public, private, nonprofit and academic leaders from Alabama, Florida, Louisiana and Mississippi today will launch a new initiative called the “Gulf Coast Economy: Ready 4 Takeoff Coalition.”

Riley Taps Rainy-Day Fund

Confronted with a continuing drop in revenues, Gov. Bob Riley tapped Alabama’s rainy-day account for $123.8 million to stave off additional general fund spending cuts earlier this month. State agencies were already ordered to make 12% across-the-board cuts on April 30.

Newark Weighs Property Lease-Backs With County Agency

Newark, N.J., officials are considering selling certain properties to the Essex County Improvement Authority in a lease-back arrangement to help balance the fiscal 2010 budget.

California Advances Bill to Curb Municipal and Agency Bankruptcies

ALAMEDA, Calif. — A bill designed to make it harder for California local governments and agencies to file for bankruptcy cleared a key committee Tuesday afternoon.

Deal in Focus

MetPier Picks Restructuring Team

CHICAGO — The Metropolitan Pier and Exposition Authority of Illinois has picked Goldman, Sachs & Co. and Morgan Stanley as the joint book-running senior managers on its first financing under legislation that allows it to restructure a $2.1 billion debt portfolio.

California To Hold Back $3 Billion

Schools, Counties Hit as Crisis Lingers

ALAMEDA, Calif. — With no obvious progress in sight on California’s seriously overdue budget, state financial officials announced plans to defer ­almost $3 billion in payments to schools and county governments next month. [FREE]

N.J. Treasury Gets 12 Responses for Debt Defeasance RFP

The New Jersey Treasury Department received 12 responses from financial advisers to a request for proposals as the state looks to defease outstanding general obligation bonds.

New Law Gives Local N.Y. Issuers The Ability to Sell Deficit Notes

Local issuers in New York will be able to sell deficit notes to make up for revenue shortfalls under legislation signed into state law earlier this month.

PennDOT, Turnpike Spar as $600M Bond Deal Idles

The Pennsylvania Department of Transportation and the Pennsylvania Turnpike Commission are in disagreement over payments the turnpike makes to PennDOT under Act 44.

University of Akron Sets $136M for Refinancing, Swap Termination

CHICAGO — The University of Akron in Ohio is pricing $135.7 million of bonds Wednesday that will allow the school to shift its debt into fixed-rate mode and terminate a costly interest-rate swap.