Illinois

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.

Illinois House Speaker Michael Madigan, D-Chicago, has introduced legislation seeking a constitutional amendment to require a three-fifths supermajority vote of the General Assembly for any future pension benefit increases.

Moody’s Investors Service has placed Springfield’s A1 senior-lien electric revenue bond rating under review for a downgrade due to a significant narrowing of the utility’s financial position that resulted in a debt covenant violation for fiscal 2012.

A bankruptcy court judge in Chicago will be asked next week to approve a $53.5 million cash offer to purchase the assets of the Clare at Water Tower continuing-care community in a deal that provides holders of the facility’s $229 million of debt with a recovery rate of at least 20 cents on the dollar, sources said.

CHICAGO — Two former Raymond James & Associates Chicago bankers have resigned to join Stifel, Nicolaus & Co. with the goal of bolstering the firm's business with big issuers in Illinois and complementing its Midwestern and national public finance practice as it seeks to expand its fixed-income business.

CHICAGO — Moody's Investors Service has affirmed the ratings on $2.4 billion of debt issued by eight Illinois public universities, taking the schools off watch list for a possible downgrade after a three-month review triggered by the state's downgrade and concerns over the schools' exposure to chronic delays in state aid.

Cook County's pension fund has seen a 30% drop in its funded status over the last 10 years and without action will be insolvent by 2038, according to a new county analysis.

Moody's Investors Service has downgraded Northwest Community Hospital in suburban Chicago one notch to A2 following fiscal 2011 results that fell short of budgeted projections.

Chicago-based Mercy Health System formally joined Michigan-based Trinity Health last week.

Moody's Investors Service's new methodology for bonds backed by special tax revenues prompted it to put Chicago's Aa2 sales-tax-backed rating on review for a possible downgrade.

The Illinois Finance Authority board advanced up to $875 million worth of borrowing for health care and higher education organizations, including Ascension Health Alliance's sale of up to $600 million of new-money and refunding debt and $150 million from Loyola University of Chicago.