Massachusetts

Massachusetts hospitals and higher educational institutions could face higher borrowing costs in the future as the state plans to fold the Massachusetts Health and Educational Facilities Authority into the Massachusetts Development Finance Agency.

The Massachusetts Department of Transportation is looking for underwriters to work on a potential refunding of $145 million of outstanding Western Turnpike debt.

Massachusetts voters in November have the option to slash the state’s sales tax rate to 3% from 6.25%.

WASHINGTON — Former Southwest Securities Inc. banker John F. Kendrick has agreed to pay a civil penalty of $10,000 to settle Securities and Exchange Commission charges that he willfully violated, and caused the firm to violate, Rule G-37 by making significant political contributions to Massachusetts Treasurer Timothy Cahill.

Massachusetts Gov. Deval Patrick yesterday signed into law a $27.6 billion fiscal 2011 budget as lawmakers continue to work on legislation that would restructure general obligation bonds to reduce fiscal 2011 debt-service costs. Fiscal 2011 begins today.

Morgan Stanley will pay $42.5 million to Massachusetts' pension funds and its general fund in a settlement agreement regarding the financing and securitization of subprime loans in the state.

Massachusetts legislators yesterday evening were set to pass a $27.9 billion fiscal 2011 budget plan that includes an anticipated debt restructuring to lower debt service costs next year.

The Internal Revenue Service has closed an audit of $119.2 million of student loan bonds issued by the Massachusetts Educational Financing Authority with no change to the tax-exempt status of the debt.

The Massachusetts Department of Transportation yesterday approved a $10.3 billion, five-year capital plan along with a $698 million operating budget for fiscal 2011.

Massachusetts on Wednesday announced plans beginning this week to issue its final fiscal 2010 new-money general obligation bond offering, $250 million of tax-exempts geared toward retail ­investors.

The Massachusetts School Building Authority Wednesday will issue $151 million of taxable qualified school construction bonds secured by a subordinate lien on dedicated sales tax revenue.

Massachusetts is looking to form a pool of financial advisers to assist it with upcoming bond and note deals.

The Massachusetts Department of Transportation this week will price $893.8 million of fixed-rate senior revenue bonds to refinance Metropolitan Highway System debt it took on from the former Massachusetts Turnpike Authority, followed by a $207.6 million variable-rate senior debt sale.

Massachusetts voters in November could face a ballot initiative to reduce the sales tax to 3% from 6.25%, a change that would slash collections by $2.5 billion in fiscal 2012.

Moody’s Investors Service last week revised to negative from stable its outlook on $4.5 billion of outstanding Massachusetts Water Resources Authority debt.

Massachusetts has $1.07 billion of private-activity borrowing capacity in 2010, with the state rolling over $482 million of unused PAB volume from 2009.

The Massachusetts Bay Transportation Authority last week approved a five-year, $3.8 billion capital spending plan that includes $800 million of bonds to support mass transit infrastructure improvements in the greater Boston area.

The Massachusetts Department of Transportation today will issue its first-ever bond transaction, a $274.7 million fixed-rate refinancing to generate savings.

CHICAGO — Private-equity group Cerberus Capital Management LP yesterday said it would buy Boston’s nonprofit Cerberus Christi Health Care for $830 million, taking over the Catholic system’s long-term debt and spending $400 million on capital upgrades.

WASHINGTON — Southwest Securities Inc. has agreed to pay $470,147 to settle charges with the Securities and Exchange Commission for violating an anti-pay-to-play rule by co-underwriting Massachusetts bond deals within two years after its former senior vice president made political contributions to state Treasurer Timothy Cahill.