Illinois

CHICAGO — Illinois Gov. Pat Quinn Wednesday will unveil a proposed fiscal 2011 budget that cuts spending and calls for new deficit borrowing to help trim a $13 billion deficit, but a gaping hole will remain unless lawmakers approve revenue increases, Quinn aides said Tuesday.

CHICAGO — The Illinois Finance Authority yesterday advanced more than $800 million of new-money and refunding debt planned by various organizations, including the Art Institute of Chicago, the Alexian Brothers Health System, and Palos Community Hospital.

CHICAGO — The funded ratios of 10 Chicago-area government pension plans further deteriorated in fiscal 2008, driving their unfunded liabilities up to $18.5 billion from $3.4 billion a decade earlier as steep investment losses exacerbated the already poor position of most of the funds, according to a new report from a local watchdog group.

CHICAGO — With Illinois more than $700 million in arrears on aid it owes its public universities, the Senate approved a measure yesterday that would allow the universities to issue short-term debt to manage through the ongoing payment delays.

CHICAGO — Underwriters, financial advisers, and bond counsel interested in working on upcoming general obligation issues for Cook County, Ill., have until tomorrow at 10 a.m. to submit their interest to the county.

CHICAGO — Moving to take full advantage of the taxable Build America Bond program, Illinois plans to sell as much as $1 billion of general obligation BABs over the next two weeks to raise funds for its $31 billion capital program.

CHICAGO — The financially struggling Clare at Water Tower, an upscale, high-rise senior-living development in downtown Chicago, has reached a preliminary restructuring agreement with a group of bondholders and its letter of credit bank that, if approved, would buy the facility more time to succeed.

CHICAGO — Gov. Pat Quinn’s effort to build support for an income tax hike to help dig Illinois out of a $12.8 billion budget hole and liquidity crisis was helped along this week by a local government watchdog group that endorsed tax increases if accompanied by $2.5 billion in spending cuts and pension reforms.

The Illinois Regional Transportation Authority last week warned that additional service cuts are looming if the state doesn’t soon make good on $250 million in aid payments owed to the agency.

CHICAGO — Illinois Gov. Pat Quinn last week signed legislation that replaces the current 13-member board of the fiscally struggling Metropolitan Pier and Exposition Authority with a seven-member interim panel charged with reviewing how to revamp the agency’s management of Chicago’s convention center business.

Moody's Investors Service has revised its outlook to stable from positive on Bethel Terrace Apartments' Baa3 rating due to a significant decrease in investment earnings.

Moody's Investors Service downgraded the Springfield Park District's debt to Baa1 from A3 and assigned a negative outlook due to the district's narrowed financial position.

A DuPage County Circuit Court judge last week handed over the title of St. Johannes Cemetery to Chicago, advancing the city's effort to clear a path for one of several new runways planned as part of the $8 billion expansion of O'Hare International Airport.

Chicago Mayor Richard Daley last week ordered city departments to cut non-personnel spending by 6% to save $11 million as economically sensitive revenues like the sales tax and real estate tax have failed to pick up.

CHICAGO — Illinois later this week will refund up to $1.4 billion of general obligation bonds in a deal that should provide some small but much-needed debt service savings as Gov. Pat Quinn and lawmakers move to begin addressing the state’s liquidity and budget crisis.

CHICAGO — The Chicago Transit Authority board this week signed off on the agency’s planned sale of $550 million of sales tax-backed, mostly taxable Build America Bonds to finance the acquisition of new rail cars.

CHICAGO — The Illinois Finance Authority this week advanced plans for $750 million of health care borrowing planned by Alexian Brothers Health System, the University of Chicago Medical Center, Palos Community Hospital, and a continuing-care community.

CHICAGO — The fiscal strain in Illinois that has led to record long bill payment delays this week prompted Moody’s Investors Service to downgrade five of eight state-supported universities that are owed $735 million by the state.

Moody’s Investors Service last week downgraded to junk the unlimited-tax general obligation debt issued by the village of Riverdale, in suburban Chicago.

Standard & Poor’s last week upgraded the rating of West Chicago by two notches to AA-plus based on the city’s strong financial position.