Yvette Shields

CHICAGO — Chicago Mayor Richard Daley unveiled a $6.14 billion 2010 budget yesterday that relies on spending cuts and one-time maneuvers like debt restructuring and a raid on reserves to wipe out a $520 million deficit without any new or increased taxes, fees, or fines.

CHICAGO — The promise of personal financial benefits drove former Illinois Gov. Rod Blagojevich’s decision in 2003 to choose Bear, Stearns & Co. to run the books on the state’s general obligation pension bond sale and to give his go-ahead on the day of pricing to issue the full $10 billion authorization, the governor’s former chief of staff alleged in a plea agreement with federal prosecutors filed yesterday.

CHICAGO — More than $1 billion of borrowing by health care facilities in Illinois is expected in the coming months in deals approved by the Illinois Finance Authority board amid improved market access for the sector.

Standard & Poor’s raised Harrisonville’s annual appropriation-supported debt rating two notches to A-plus in recognition of its very strong general fund financial reserves.

Standard & Poor’s raised the city of Victoria’s general obligation rating one notch to AA-plus in recognition of good financial management that has contributed to positive general fund operations and the maintenance of very strong reserves.

Moody’s Investors Service last week revised the outlook on Loyola University of Chicago’s A3 credit to stable from negative because of strong operating performance and cash flow as well as operating improvement initiatives being undertaken by the university’s health system.

CHICAGO — Ahead of the release this week of his proposed $6.2 billion 2010 budget, Chicago Mayor Richard Daley yesterday announced spending reductions and other measures to generate $114 million in savings as he seeks to close a $520 million deficit without raising taxes or fees.

CHICAGO — Minnesota today launches its first formal retail-order period for a general obligation sale before opening the $475 million issue of new-money bonds and possibly some refunding bonds to institutional buyers on Thursday.

Las Vegas — Emerging slowly from the financial crisis, hard-hit nonprofit health care borrowers are gaining ground in market access and on credit spreads. However, they face tougher disclosure demands and must rethink strategies to lure investors going forward, especially given the looming uncertainties associated with national health care reform.

CHICAGO — In a further reshuffling of Illinois’ finance team, debt manager Phil Culpepper will move over to the Illinois Housing Development Authority to the post of deputy executive director, while the Illinois Student Assistance Commission’s chief financial officer, John Sinsheimer, has stepped into the newly created position of state director of capital markets.

CHICAGO — As school districts’ issuance of qualified school construction bonds picks up, the market is seeing its first competitively sold transactions of the tax-credit bonds, with several Midwestern district issues done and several more — including one from Milwaukee Public Schools — on the horizon.

Moody’s Investors Service downgraded Manitowoc County’s credit one notch to A1 ahead of its sale of $5 million of note anticipation notes this week due to its pressured financial position. The action affects $21 million of debt.

The Minneapolis Special School District won a one-notch upgrade in its issuer credit rating to AA, Standard & Poor’s reward for management’s successful efforts to control spending and for the fiscal boost provided by voters who recently approved a $60 million annual levy.

The Chicago Transit Authority this week proposed a $1.3 billion 2010 budget that relies on a fare hike, service cuts, other spending reductions, and dipping into capital funding to eliminate a $300 million operating deficit.

CHICAGO — Investment banks interested in working on the Illinois State Toll Highway Authority’s new-money and refunding bond sales planned over at least the next two years have until Oct. 20 to submit their qualifications to the agency.

CHICAGO — Chicago and its philanthropic foundations have established the Chicago Recovery Partnership, a unique union aimed at speeding up the distribution, use, and then tracking and review of federal stimulus to benefit the city and its not-for-profit community.

CHICAGO — Iowa Gov. Chet Culver yesterday ordered an across-the-board 10% cut in spending to wipe out a shortfall in the state’s $6.3 billion fiscal 2010 budget due to dwindling revenue collections.

CHICAGO — Chicago expects to tap an array of federal stimulus debt programs in its sales of up to $2.85 billion of new-money and refunding general obligation and airport bonds that were submitted to the City Council for approval yesterday, chief financial officer Gene Saffold said.

CHICAGO — Froedtert & Community Health Inc. enters the market today to issue $187 million of revenue bonds to restructure some remaining insured auction-rate securities and variable-rate demand bonds and raise new money for various projects.

CHICAGO — Moving to reshape the state’s budget office after eight months in office, Illinois Gov. Pat Quinn appointed his senior fiscal adviser David Vaught to the state’s top fiscal post this week amid dire warnings from the comptroller that Illinois faces a cash-flow crisis with $3 billion in unpaid bills.