Illinois

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.

Moody’s Investors Service last week downgraded Elmhurst Memorial Healthcare’s rating one notch to Baa2 due to the Illinois hospital operator’s modest operating performance for fiscal 2011 and the first half of fiscal 2012.

Cook County Commissioner and former Chicago Alderman William Beavers was indicted last week on three counts of filing false income tax returns and one count of endeavoring to obstruct and impede the Internal Revenue Service.

Chicago Mayor Rahm Emanuel and City Colleges of Chicago officials announced a $479 million, five-year capital program last week that relies on $274 million of future borrowing.

Warning lawmakers that their toughest task ahead is overhauling Medicaid and pensions, Illinois Gov. Pat Quinn unveiled a $33.9 billion fiscal 2013 general fund budget that holds spending in check through layoffs and state facility closures while leaving billions in unpaid bills.

Moody’s Investors Service has upgraded the Illinois Housing Development Authority’s housing bond program to Aa3 from A1 in recognition of its strong financial position reflected in an asset-to-debt ratio of 149%.

Fitch Ratings recently upgraded the debt of Illinois’ Regional Transportation Authority to AA as part of its review of tax-supported debt enterprises with an increased focus on operating risk and other factors.

Illinois Gov. Pat Quinn last week announced the award of $623 million in state funds for school district projects.

CHICAGO — Strapped for traditional funding to renovate one of its aging light-rail lines, the Chicago Transit Authority has hired Goldman, Sachs & Co. and two other firms as advisors to explore alternative financing options, including a public-private partnership.

The Internal Revenue Service is auditing $346.6 million of general obligation refunding bonds unlimited tax series and $50.79 million of GO refunding bonds limited tax series issued by the Metropolitan Water Reclamation District of Greater Chicago in May 2006.

Chicago finance officials submitted to the City Council bond ordinances seeking approval to sell more than $3 billion of new-money and refunding general obligation, water revenue, and O'Hare International Airport debt this spring.