Caitlin Devitt

Moody’s Investors Service last week downgraded Springfield’s waterworks utility revenue bonds to Aa3 from Aa1, citing consolidation of the water revenue pledge and the public utility pledge into one combined utility security.

Michigan has diverted more than $4 billion in state revenue that was intended for local governments in order to balance its budgets over the last few years, according to the Michigan Municipal League.

Indiana college and university officials say they need at least $700 million for new capital projects, but lawmakers say they are unlikely to fund the requests in the cash-strapped state’s upcoming two-year budget.

The Indiana House last week unanimously passed a bill to set up a House-Senate committee that would spend five years examining the condition of the state’s roads, bridges, and other infrastructure.

A pair of Indianapolis state senators have introduced a bill that would repeal two future tax increases aimed at boosting the board that runs the city’s sports venues and convention center.

Two of the Chicago area’s biggest health-care providers are considering a merger that would create the largest Catholic hospital system in Illinois.

CHICAGO — States and local governments across the Midwest that were already struggling with budget challenges are bracing for a fresh flurry of bills following last week’s severe winter weather.

CHICAGO — Michigan would issue nearly $4 billion of tax-exempt bonds to pay off a $3.7 billion obligation to the federal government for unemployment insurance under a proposal being considered by state Treasurer Andy Dillon.

CHICAGO — The Michigan treasurer this week will launch a new training program for would-be municipal emergency financial managers as the state braces for a rise in the number of fiscally stressed local governments.

CHICAGO — States already facing big challenges balancing their budgets should brace for new costs and volatility stemming from implementation of the new federal health care law over the next few years, Standard & Poor’s said in a new report.

CHICAGO — New Cook County, Ill., Commission President Toni Preckwinkle unveiled her first budget Tuesday, a $3 billion spending plan for fiscal 2011 that she said would restore fiscal stability to the nation’s second-largest county.

Fitch Ratings downgraded to A from A-plus $29 million of air quality revenue bonds issued on behalf of Buckeye Power Inc. and assigned an A rating to $75 million of environmental improvement revenue bonds that were issued in December.

The University of Nebraska Board of Regents last week approved a $28.5 million bond issue to help finance a plan to rehab and expand its sports facilities to make it more competitive with those of other Big 10 college teams.

Michigan Gov. Rick Snyder Monday unveiled a 21-page overview of the state’s fiscal position and said he would release a full two-year budget on Feb. 17.

CHICAGO — The Indiana Senate could vote as early as Tuesday on a bill that would allow fiscally distressed cities and towns to file for bankruptcy.

CHICAGO — New Ohio Treasurer Josh Mandel has tapped a former Squire, Sanders & Dempsey LLP public finance attorney to oversee the office’s debt issuance.

CHICAGO — Three weeks after the Federal Trade Commission sued Promedica Health System, arguing it violated antitrust rules, the Ohio-based hospital chain is keeping a $249 million new-money deal on hold.

CHICAGO — Pontiac, Mich., became Fitch Ratings’ lowest-rated U.S. city Tuesday after the agency downgraded the city’s general obligation debt to CCC.

CHICAGO — Indianapolis hopes to start reaping the benefits this year of a $1 billion downtown development that features an expanded Indiana Convention Center connected to a new football stadium and the world’s largest Marriott hotel complex.

The Ohio Building Authority last week completed its first competitive sale since 1992.