Ted Phillips

New York Gov. David Paterson yesterday ordered state agencies to cut $500 million from current-year spending, an 11% across the board reduction. The action is the first concrete move to cut the $2.1 billion gap that opened up in the state’s $131.9 fiscal 2010 budget primarily due to lower than expected personal income tax collections.

Under threat of layoffs, Rhode Island’s largest municipal union has accepted a pay-cut plan negotiated with Gov. Donald Carcieri, the union announced yesterday.

Autumn is shaping up to be Build America Bond season in New York.

When the New York Legislature passed a bill in July to impose new restrictions and oversight on public authorities, the legislation’s sponsor called it “the most thorough reform of the authority system in American history.”

Rhode Island revenues are expected to fall $100 million below projections for the current fiscal year, state officials said last week.

Stone & Youngberg LLC has tapped public finance veteran Jeff Hyman to open up a new Albany, N.Y., office. Hyman was among four bankers the firm hired this summer to expand its New York City office.

The reorganization of New York's economic development agency continued yesterday with the appointment of a new executive director. Gov. David Paterson announced that Peter Davidson, chairman of the J.M. Kaplan Fund, a philanthropic organization, would fill the newly created post.

The New York State Thruway Authority plans to refund $521.7 million of auction-rate securities this week with a retail order period beginning tomorrow and institutional pricing Thursday. The refunding will further reduce the state's outstanding ARS to $600 million.

Air travel may be down, but bonds sold to build a cargo facility at a New York City airport managed to pull up in time, according to Standard & Poor's.

The leadership of a union representing a third of the state’s employees reversed course on Friday and said it would allow its members to vote on a cost-savings plan negotiated with the governor.

Developer Forest City Ratner Cos. announced last week that a Russian firm would invest $200 million in the Nets basketball team and Atlantic Yards project in Brooklyn. The transaction could be completed in the first quarter of 2010.

Lower-rated borrowers that couldn't meet the Dormitory Authority of the State of New York's stringent credit requirements are likely to find the door open a little wider in the near future if staff recommendations presented yesterday are implemented.

The Dormitory Authority of the State of New York approved the state's first qualified school construction bond deal at its monthly board meeting yesterday.

New York faces a $3 billion deficit in the current fiscal year, Gov. David Paterson said at a meeting of legislative leaders yesterday.

New York City plans to jump into the taxable Build America Bond market next week with $800 million of general obligation debt, city officials said yesterday.

Maintaining New York's double-A range credit rating is a priority, Lieut. Gov. Richard Ravitch said hours after his appointment was ruled legal by the state's highest court yesterday.

New York's Metropolitan Transportation Authority announced yesterday at a finance committee meeting that it plans to sell up to $600 million of bonds next month.

New York next month will attempt to sell the biggest offering to date under a new tax-credit bond program to finance school construction that has gotten off to slow start.

The Empire State Development Corp. last week approved a modified general project plan for the Atlantic Yards project in Brooklyn. The proposed project is a mixed-use development, primarily composed of apartment towers.

The New York City Housing Development Corp. last week approved $269.3 million of tax-exempt bonds and notes to finance the construction and permanent financing for affordable housing projects.