Ted Phillips

New York Gov. David Paterson yesterday called on the Legislature to either pass a modified $3.2 billion deficit reduction plan or grant him the authority to do it himself. The Legislature is in its third week of an extraordinary session to cut the current-year budget gap but has yet to reach an agreement with the governor.

With a little help from the U.S. Treasury, the Rhode Island Housing and Mortgage Finance Corp. plans a return to the housing bond market today after a nearly 15 month hiatus.

New York could face a downgrade or outlook change if nothing is done to close the state’s $3.2 billion current year deficit, or if actions to close the gap are primarily one-shots and revenues fall below projections, Moody’s Investors Service warned in a credit report last week.

Fitch Ratings revised the Battery Park City Authority’s outlook to negative from stable last week, citing the potential volatility of the commercial and residential real estate market.

Bond offering documents for the controversial Atlantic Yards development in Brooklyn will go to the issuer’s board for approval tomorrow. If approved, the bonds may be sold before the end of the year and the proceeds put into escrow while ongoing legal challenges continue in the courts.

The New York State Thruway Authority last week passed a $1.2 billion 2010 operating budget with no plans to issue general revenue bonds in 2010, the third year in row it will not sell long-term debt on its own credit.

As a tower begins to rise at the World Trade Center site in lower Manhattan, the property’s owner, the Port Authority of New York and New Jersey, yesterday authorized the sale of $1 billion of taxable bonds to finance further construction.

New York lawmakers reached a compromise on public authority reform, Gov. David Paterson announced yesterday evening at a press conference in Albany flanked by the Democratic Legislative leadership.

New York’s Metropolitan Transportation Authority proposed a balanced operating budget for 2010 yesterday but set aside additional reserves in case its assumptions prove overly optimistic.

Wall Street revenues are recovering more quickly than expected but compensation reform could reduce the positive effect on New York’s bottom line, according to a report released yesterday by state Comptroller Thomas DiNapoli.

New York State plans to market $100 million of tax-exempt fixed-rate student loan bonds this week under a new program. The New York Higher Education Finance Authority will offer the debt to retail investors tomorrow, with institutional sales beginning on Thursday.

Connecticut is in the market this week with $600 million of tax-exempt general obligation notes to finance the state’s fiscal 2009 budget deficit. Institutional sales begin tomorrow and follow a two day retail order period that began on Friday.

The Long Island Power Authority plans to sell $200 million of new-money bonds next year, according to a proposed 2010 budget released last week. LIPA also expects to refund $400 million of outstanding debt next year.

bus system.Prendergast comes to the MTA from the South Coast British Columbia Transportation Authority, Vancouver’s mass transit system, also known as TransLink. He served as CEO since July 2008. Prior to TransLink, he had helped oversee infrastructure projects at Parsons Brinckerhoff Inc..

Yale University priced $1 billion of five-year taxable fixed-rate notes yesterday. The notes, which will mature in five years, will be used to take out $560 million of taxable commercial paper and provide working capital.

New York's Metropolitan Transportation Authority will be looking across the pond for ideas on how to improve service and management and how to address its capital needs.

The Hospital for Special Surgery in New York City will begin a retail order period tomorrow for $85 million of bonds secured by a Federal Housing Administration-insured mortgage.

New York has used its dedicated highway and bridge trust fund more like a piggy bank than the pay-as-you go vehicle it was originally created as, according to a report released last week by Comptroller Thomas DiNapoli.

The $700 million of bonds to finance a professional basketball arena at the Atlantic Yards project in Brooklyn could be sold and the proceeds placed into escrow as legal challenges to the project are resolved, an official at the Empire State Development Corp. said yesterday.

The Dormitory Authority of the State of New York at its board meeting yesterday gave final approval for $1 billion of bonds to finance workers’ compensation settlements with New York State and $520 million of debt for two colleges.