Caitlin Devitt

CHICAGO — Michigan faces a $1.6 billion deficit next year as its federal stimulus funds run out, but the state could begin to see slight revenue growth by mid-2011, analysts said this week after releasing new estimates.

Fitch Ratings revised its outlook to negative and affirmed its BBB-minus rating on Friendship Village of Columbus, Ohio Inc., a continuing care retirement community facility.

A committee of the Cleveland-Cuyahoga County Port Authority last week recommended selling $30 million of tax-exempt bonds to jump-start a privately run $278 million development project along the Cuyahoga River.

Evansville will take over operation and management of its water and sewer system after 17 years of management by private companies.

The Indiana House Monday approved a historic bill that would make property-tax caps part of the state constitution.

CHICAGO — Ohio State University today will begin taking retail orders on a refunding issue that will range in size from $154 million to $274 million in order to eliminate some of the school’s variable-rate debt and achieve savings on its existing fixed-rate bonds.

CHICAGO — The Ohio Water Development Authority today will begin taking retail orders on $400 million of new-money bonds in a transaction that could include some taxable Build America Bonds.

CHICAGO — Triple-A rated University of Michigan will enter the market today with $163 million of general revenue Build America Bonds.

CHICAGO — The Indiana Finance Authority Monday afternoon will begin taking retail orders on $350 million of triple-A rated state revolving fund program refunding bonds, before opening the sale to institutional buyers Wednesday.

CHICAGO — Cleveland-based MetroHealth System is expected to enter the market today with $75 million of taxable Build America Bonds and possibly another series of tax-exempt fixed-rate debt to finance capital projects.

CHICAGO — Standard & Poor’s has upgraded 10 local borrowers that have issued debt through the Michigan Transportation Fund — boosting most of them to top AAA marks— primarily due to high debt-service coverage.

Standard & Poor’s revised its outlook to stable from negative on Youngstown, saying the city’s leaders have been able to stabilize operations and staunch recent drains on reserves. The agency also affirmed its BBB-minus rating on the city.

Ohio Gov. Ted Strickland was handed a victory this week when the state’s 10th District Court of Appeals ruled that the governor and the General Assembly have the authority to spend more than $230 million of tobacco settlement funds originally set aside for antismoking programs to help balance the budget.

Moody’s Investors Service downgraded to Baa2 from Baa1 $8.95 million of debt issued on behalf of Memorial Healthcare, located in Shiawessee County between Lansing and Flint.

CHICAGO — A Minnesota judge last week ruled that budget cuts ordered by Gov. Tim Pawlenty last summer were unconstitutional — a ruling that could have a big impact on the state’s current $57 billion budget and on how lawmakers tackle a fresh $1.2 billion deficit heading into 2010.

CHICAGO — As the largest buyer of qualified school construction bonds, Guggenheim Partners LLC has purchased a piece of nearly every QSCB issue since the federal stimulus act launched the new type of tax-credit bond earlier this year.

CHICAGO — Ohio plans to enter the market next week to refund $271 million of general obligation debt in a transaction that is expected to save the struggling state up to $740 million over the next two years.

Cleveland Mayor Frank Jackson last week said he would need to drain the city’s rainy-day fund in order to help close an estimated $23 million deficit in 2010.

A Michigan state lawmaker representing Detroit introduced a bill that would establish a bond-issuing regional mass transit authority for his region.

Moody’s Investors Service last week upgraded to Aa3 from A1 debt issued on behalf of McLaren Health Care Corp., and revised the outlook to stable from positive.