Illinois

CHICAGO — The Illinois House approved a bill Friday that raises the cigarette tax by $1 and establishes charity care standards for the state's nonprofit hospitals in order to preserve their property tax exemption.

Moody’s Investors Service downgraded Springfield, Ill.’s senior-lien electric revenue bonds two notches and assigned a negative outlook.

The Internal Revenue Service has notified the Metropolitan Water Reclamation District of Greater Chicago that it has closed an audit without changing the tax-exempt status on $346.6 million of general obligation refunding bonds and $50.79 million of GO refunding bonds limited-tax series issued in May 2006.

Chicago enters the market with $600 million of new-money and refunding general obligation debt, hoping investors turn a favorable eye on budgetary strides and the administration's initial steps toward repairing pension woes.

Chicago announced an agreement Monday with Aeroterm LLC to begin construction on a new, $200 million cargo center at O’Hare International Airport.

CHICAGO — Illinois Gov. Pat Quinn is expected to soon sign legislation shifting more of the funding burden for retiree health care to recipients, a move projected to save more than $250 million annually and shave billions off the state’s other post-employment benefits unfunded liability.

CHICAGO — The Illinois Finance Authority last week advanced financings on behalf of Loyola University of Chicago and Lake Forest College to help fund upgrades to residential and other student facilities considered key to the schools' appeal.

Illinois Transportation Secretary Ann L. Schneider last week unveiled a $9.2 billion multi-year program that combines planning and programming for highways, airports, rail and mass transit from fiscal 2013 to fiscal 2018.

While Illinois Gov. Pat Quinn’s proposed pension reforms would help stabilize the state’s pension system, according to Moody’s Investors Service, analysts warned of the negative effects it would have on some local governments, since it requires school districts to start shouldering some of the burden for funding their teachers’ pensions.

CHICAGO — Chicago enters the market this week with more than $400 million of mostly new-money water revenue bonds in its first borrowing to benefit from recent rate hikes that paved the way for an acceleration of projects under a five-year, $1.67 billion program.

CHICAGO — The Regional Transportation Authority of Illinois plans to enter the market later this spring with a cash-flow issue that could reach up to $400 million depending on the fate of its request to extend an expiring short-term borrowing authorization.

A circuit court judge last week declared unconstitutional a 2011 Illinois law requiring out-of-state companies to collect online sales taxes.

CHICAGO – Moody's Investors Service called Illinois Gov. Pat Quinn's proposed package of pension reforms a "credit positive" on Monday.

Illinois Gov. Pat Quinn's recent proposals to stabilize state finances may not help shrink the interest rate penalty demanded by investors on the state's $1.8 billion refunding set for next week.

Moody's Investors Service put Chicago on notice that its unfunded pension obligations of nearly $15 billion threaten the stability of the city's Aa3 general obligation rating.

CHICAGO — The Chicago City Council overwhelmingly approved Mayor Rahm Emanuel's controversial plan to establish an infrastructure trust to tap private investment in public projects after rejecting several measures aimed at tightening oversight of the new nonprofit.

Federal Bureau of Investigation agents last week arrested Dixon, Ill., Comptroller Rita Crundwell for allegedly defrauding the city of more than $3.2 million in public funds since last fall and misappropriating $30 million since 2006, federal prosecutors in Chicago announced.

Illinois Gov. Pat Quinn unveiled a plan Thursday to trim $2 billion in Medicaid spending through cuts and other savings while raising $700 million in new revenue from a cigarette tax hike and federal matching funds in an attempt to ease the program's strain on state finances.

Chicago Mayor Rahm Emanuel submitted to the City Council ordinances allowing for the issuance of up to $1.5 billion of Midway Airport bonds and about $300 million of wastewater revenue bonds while pushing off a vote on his controversial plan to set up a new financing arm for some infrastructure projects.

The Chicago City Council is expected to take up Mayor Rahm Emanuel's plan to establish an infrastructure trust that would serve as a vehicle to leverage private investment in public works projects.