Illinois

CHICAGO — Moody’s Investors Service Friday downgraded Illinois’s general obligation debt to A1 from Aa3, saying infighting among the state’s leaders has led to ongoing budget delays, erosion of finances, and a severe pension funding gap.

CHICAGO — The Illinois General Assembly adjourned late last week after passing a fiscal 2011 budget that chips away at a $13 billion deficit primarily with one-time maneuvers — including a $1.7 billion tobacco bond financing — and by pushing off $6 billion in bills while leaving a $3.7 billion hole.

CHICAGO — The Illinois State Toll Highway Authority plans in early to mid-June to sell $400 million of refunding bonds as it moves to shift a chunk of synthetic floating-to-fixed-rate debt to a traditional fixed-rate structure to reduce bank and liquidity risks.

CHICAGO — Ohio next week will price $20 million of taxable revenue bonds backed by profits from the state’s liquor sales, a revenue source unscathed by the recession.

CHICAGO — Putting aside partisan bickering over a fiscal 2011 budget, Illinois senators today will unite to vote on an override of Gov. Pat Quinn’s veto of a Metropolitan Pier and Exposition Authority reform bill that allows the agency to restructure its $2 billion of debt.

CHICAGO – In its second try yesterday, the Illinois House late Tuesday narrowly approved Gov. Pat Quinn’s proposal to issue $4 billion of general obligation bonds to cover the state’s fiscal 2011 pension payment.

CHICAGO — With Illinois behind a record $290 million in payments to the Regional Transportation Authority, the agency is awaiting Gov. Pat Quinn’s signature on a bill that would allow it to issue an additional $140 million of taxable cash-flow notes to keep Chicago-area trains and buses running.

CHICAGO — Chicago plans to sell about $175 million of general obligation bonds next month to provide an infusion of funding for school building projects at the cash-strapped Chicago Public Schools to help keep its long-term $5 billion capital program on track.

CHICAGO — While Illinois lawmakers temporarily adjourned last week without passing a fiscal 2011 budget, they did approve legislation establishing a commission that will lead the initial planning effort for a regional high-speed rail system.

CHICAGO — The University of ­Chicago is watching the market closely, hoping to sell $300 million of taxable fixed-rate bonds this week or next to raise funds for capital projects and restructure debt from a bank line of credit.

CHICAGO – With no long-term resolution in sight over the state’s budget crisis, Illinois lawmakers adjourned on Friday after giving public universities new borrowing authority and approving a debt restructuring for the agency that manages Chicago’s convention center.

CHICAGO — The Illinois Finance Authority board advanced plans this week for more than $550 million in health care-related deals, including the Clare at Water Tower’s tender and exchange offer that is part of a debt restructuring aimed at giving the struggling retirement development more time to succeed.

CHICAGO — A special pension commission named by Chicago Mayor Richard Daley has recommended increased contributions and policy changes to address the city’s pension funding crisis, but several panel members panned the proposals as falling far short of the more dramatic action needed to avert looming shortfalls.

CHICAGO — The bill for fixing Chicago’s underfunded pension funds would cost taxpayers at least $660 million annually and without action the funds will face shortfalls within the decade, according to a report released Friday by a special pension commission appointed by Mayor Richard Daley.

CHICAGO — Legislation aimed at shoring up Illinois school districts’ ability to tap working-cash bond proceeds for some construction projects or to cope with delayed state school aid payments without the fear of costly challenges to the long-standing practice is headed to Gov. Pat Quinn’s desk.

CHICAGO — Backed by organized labor leaders, a Democratic lawmaker yesterday pressed his colleagues to support a plan that would permit electronic gaming at Illinois’ six horse-racing tracks to ensure funding remains stable for the state’s $31 billion capital program.

CHICAGO — While Illinois is still behind in aid payments to its public universities, the rating risk posed by the state’s liquidity problems eased a bit yesterday when Moody’s Investors Service confirmed the ratings of seven of eight public schools and took them off negative watch.

CHICAGO — The Illinois Senate is expected to vote this week on legislation that would clarify school districts’ rights to tap working-cash bond proceeds for some construction projects or to cope with late state school aid payments, reducing the risks of costly challenges to the long-standing practice under the tax law.

CHICAGO — Illinois Gov. Pat Quinn’s proposed $52 billion fiscal 2011 budget relies too heavily on borrowing, leaves too many bills unpaid, and will only aggravate the state’s fiscal crisis, a Chicago-based government watchdog organization said yesterday in announcing its opposition to the spending plan.

CHICAGO — The Chicago Transit Authority early next month will restructure about $100 million of its federal capital grant-backed bonds. The agency will avoid principal payments this year and next in order to accelerate capital spending and provide an operating cushion in case fiscal pressures mount.