Illinois

CHICAGO – Illinois is asking underwriters vying for future senior manager work for advice on how best to capitalize on stopgap budget legislation that allows for the issuance of as much as $2 billion of refunding debt.

While Cook County, Ill. plots out its new money borrowing planned for later this year, finance officials will also work to close a looming $174 million gap.

Passage of a stopgap Illinois budget that keeps the spigot of aid at least partially flowing to the state's cash hungry public universities this year was overshadowed by fresh credit erosion.

Illinois lawmakers passed a six-month stopgap spending plan Thursday that will ensure schools open this fall and state services continue through the end of the year. The plan now awaits approval from Gov. Bruce Rauner.

What's the appeal of the tax-credit alternative? It guarantees that a holder will receive full value as long as he has a matching tax liability. That's true even if the issuing State is in a financial crisis and can't pay its bondholders.

Lawmakers convened this week at the state’s capital to negotiate a stop-gap spending plan to fund schools and other services for the state of Illinois before the fiscal year starts July 1.

Chicago Mayor Rahm Emanuel is requesting authority from the city council to buy, among other things, junk rated Chicago Public Schools debt.

The pleas from Illinois’ local governments, schools, and state agencies for at least a stop-gap spending plan are growing louder, as the state careens toward the start of a second fiscal year without a budget.

The Illinois Finance Authority greenlighted $1.4 billion of borrowing plans at its June meeting, led by Presence Health’s preliminary plans to restructure debt as it works to stave off further credit erosion.

The Securities and Exchange Commission has settled with a former Chicago charter school operator over charges that he negligently approved and signed a misleading official statement for a $37.5 million bond offering to build three charter schools.

Cook County, even paying the yield penalty most Illinois issuers face, landed $57 million in present value savings on a $285 million refunding in its first GO deal for more than two years..

The political and financial dysfunction of Illinois cost the state $12 million on Thursday’s $550 million bond pricing compared to its previous sale in January, according to a report from the University of Illinois Institute of Government and Public Affairs.

Illinois paid a steeper penalty to borrow Thursday after a fresh round of downgrades but a municipal market offering historically low yields helped disguise the spreads.

Kevyn Orr, who put Detroit into bankruptcy, said Chapter 9 is an option Chicago should have on the table as it steers its way through financial problems.

Illinois capital projects, including the Department of Transportation construction program, face imminent shutdown without at least a stopgap budget in place, officials in the administration of Gov. Bruce Rauner said.

The Federal Trade Commission plans to appeal a federal court judge’s refusal to block the merger of Illinois-based Advocate Health Care and NorthShore University Health System.

A suburban Chicago school district that ran into financial trouble after mishandling bond proceeds faces a Securities and Exchange Commission inquiry.

The Metropolitan Pier & Exposition Authority of Illinois absorbed a downgrade from S&P Global Services, reflecting a recent state government downgrade.

As Illinois brings a $550 million bond deal to market, its prolonged political gridlock is fueling debate over the market’s role as a disciplinarian.

Seven of Illinois’ public universities face a review for downgrade from Moody’s Investors Service.