Illinois

Illinois borrowed $4 billion last year to fund capital projects and cover its fiscal 2011 pension payment, putting it among the ranks of top issuers, but its issuance levels actually marked a sharp drop from 2010, when the state flooded the market with $8.7 billion of paper in nine deals.

Standard & Poor’s last week revised the outlook on Governors State University’s A-minus to stable from negative, due in part to the Illinois school’s demonstrated ability to manage cash flow and operations and make timely debt service payments, despite chronic delays in state aid.

CHICAGO — Bids to buy the assets of an upscale continuing-care retirement community in downtown Chicago are due by April 10, with holders of its $229 million of debt hoping for a competitive auction that results in a better recovery rate than the pennies on the dollar offered by an initial bidder.

With public ire over the former mayor's flawed $1.15 billion lease of Chicago's parking meter system still clouding the local political landscape for public private partnerships, the city is turning to a next-generation model as it eyes private dollars to fund infrastructure and lower the cost of some city services.

Holders of $229 million of debt issued for a now-bankrupt upscale continuing care retirement community in downtown Chicago would recoup just pennies on the dollar under an initial bid for the facility.

CHICAGO — The Illinois Finance Authority board on Tuesday advanced direct-purchase issues for two health care refunding deals and an $11 million allocation of Midwestern Disaster Area Bonds, the latest in a series of projects to tap the federal program before it expires at the end of the year.

CHICAGO — Local governments in Cook County, Ill., have raised property taxes nearly 50% during the last 10 years, mostly to keep pace with growing pension and employment benefits, and are moving along an "unsustainable" path that could eventually force some into bankruptcy, a Chicago-based public policy group warns in a new report.

The Illinois Health Facilities and Services Review Board approved Northwestern Memorial Hospital’s new $300 million, 1-million square-foot outpatient facility. The hospital hopes to complete the project by 2014. The building at the hospital’s main downtown Chicago campus will also house doctors’ offices.

Illinois Gov. Pat Quinn on Tuesday announced state funding of $32 million for the construction of a new transportation-related education center at the City Colleges of Chicago’s Olive-Harvey campus.

After it courts buyers at an investor conference set for late next month, Chicago plans to offer up more than $3 billion of new-money and refunding general obligation water revenue and airport debt.

CHICAGO — Illinois has agreed to the Illinois Medical District Commission's request that a $4.5 million capital grant be diverted to cure a debt-service coverage default and ensure bondholders receive full payment later this year on $40 million of state moral obligation-backed bonds.

A U.S. District Court judge in Chicago has dismissed the final count lodged against former Bear Stearns public finance banker P. Nicholas Hurtgen by federal prosecutors in connection with an extortion scheme involving a Chicago-area hospital seeking regulatory approval for a new hospital.

Still recovering from Gov. Pat Quinn's recent call for $2.7 billion in Medicaid cuts, not-for-profit hospitals in Illinois took a second blow when he lifted a six-month moratorium on stripping hospitals of their property tax-exemptions for failing to provide sufficient charity care.

CHICAGO — Former public finance banker and credit analyst Ivan Samstein has joined Cook County, Ill.'s finance team as deputy chief financial officer.

CHICAGO — Illinois enters the market next Tuesday with $500 million of general obligation bonds for capital projects and is planning two additional new-money sales before closing the books on the fiscal year in June.

The Illinois Health Facilities and Services Review Board last week approved Naperville-based Edward Hospital’s $64 million expansion plan.

The head of the nonpartisan Center for Tax and Budget Accountability last week called on lawmakers to end Illinois’ flat income-tax rate and shift to a graduated tax based on income levels.

CHICAGO — Six months after hosting its first investor conference, Chicago is inviting the buy-side community back on April 26 to update market participants on how the city and its sister agencies are dealing with their fiscal challenges.

In what is billed as a first-of-its-kind financing vehicle for municipal infrastructure, Chicago Mayor Rahm Emanuel unveiled a new trust program that will tap private investment to help fund more than $1 billion worth of projects.

Standard & Poor’s has revised its outlook on Western Illinois University’s A rating to stable from negative as analysts’ concerns over Illinois state aid delays have eased.