Minnesota

CHICAGO — Fitch Ratings stripped Minnesota of its coveted AAA rating Thursday, punishing the once flush state for political gridlock that has driven a reliance on one-time revenue gimmicks to balance recent budgets, and is also behind the current impasse over a $5 billion budget gap that has shut down state government.

As Minnesota entered its fifth day of a government shutdown, Gov. Mark Dayton and legislative leaders resumed budget negotiations Tuesday as a bipartisan set of former state officials announced the formation of a group that will try to bridge the current political divide over a $5 billion deficit.

CHICAGO - Attorneys for state retirees in Colorado and Minnesota are weighing whether to appeal court decisions last week dismissing litigation that challenged legislative cuts to pension cost-of-living hikes but fear that such rulings will "embolden" other cash-strapped states eying ways to ease pension costs.

Minnesota issued layoff notices late last week to 36,000 employees ahead of a partial government shutdown on July 1 if state leaders cannot resolve an impasse over a new two-year budget.

Ramsey County would bear none of the fiscal burden of a $350 million revenue bond issue for a new Minnesota Vikings stadium because a new sales tax would generate sufficient revenue to repay the debt, according to a report.

Moody’s Investors Service last week affirmed Allina Health Systems’ A1 rating and signaled an upgrade could be in the offing if it maintains its strong financial performance of the last two years.

CHICAGO — The St. Paul Port Authority and lawyers for a group of investors who hold a portion of its 876 Fund economic development revenue bonds will return to court later this month as litigation proceeds over the fate of $51 million of defaulted debt.

CHICAGO — The political standoff in Minnesota over taxes between Democratic Gov. Mark Dayton and Republican lawmakers showed no sign of easing this week after the governor vetoed the two-year budget approved by the GOP-controlled Legislature and officials on Wednesday started planning for a possible shutdown.

CHICAGO — Minneapolis has tapped its police department finance director, Kevin Carpenter, to serve as the city’s chief financial officer following the departure of Patrick Born earlier this year to lead the Metropolitan Council.

CHICAGO — With the clock ticking on the Minnesota Legislature’s spring session, representatives from the Minnesota Vikings and Ramsey County met with key lawmakers Wednesday to promote their proposal to build a publicly subsidized $1 billion stadium in the Twin Cities suburb of Arden Hills.

Rochester, Minn.-based Mayo Clinic will enter the market Wednesday and shift $290 million of variable-rate securities to a fixed-rate structure to open up room in its debt portfolio for future floating-rate debt that would finance two proton therapy centers.

CHICAGO — State legislation paving the way for a partially bond-financed, publicly subsidized stadium for the National Football League’s Minnesota Vikings is expected to be formally introduced on Monday to a mixed reception.

CHICAGO — Minnesota is seeking underwriters for a summer sale of $50 million of revenue bonds in what is likely the final state financing needed to fund a statewide digital-radio communications system for public safety personnel.

CHICAGO — The Minnesota attorney general’s office and lawyers representing state retirees in a lawsuit challenging legislation that curbed future increases in their pension benefits will return to court Tuesday to argue their sides.

CHICAGO — Minneapolis Tuesday will take competitive bids on $105 million of tax-exempt and taxable general obligation refunding bonds in an offering officials are hoping will attract strong interest from investors, given the rarity of its high-grade paper and the deal’s size and noncallable structure.

CHICAGO — Minnesota Gov. Mark Dayton on Monday dropped his proposal for an income tax surcharge on top earners after the state announced a new revenue forecast that trimmed nearly $1.2 billion off the $6.2 billion deficit looming in the next two-year budget cycle.

Moody's Investors Service has downgraded Hamline University's rating to Baa2 from Baa1 due to its highly leveraged balance sheet. The move affects $56 million of debt, including this week's $26 million issued through the Minnesota Higher Education Facilities Authority.

The Metropolitan Sports Facilities Commission expects insurance to cover most of the $19 million price tag for a new roof on the Hubert H. Humphrey Metrodome.

CHICAGO — Minnesota Gov. Mark Dayton unveiled a two-year, $64 billion spending plan that relies heavily on income tax increases to overcome a $6.2 billion shortfall.

CHICAGO — The University of Minnesota enters the market Tuesday with $388 million of general obligation bonds to raise funds for various projects and reduce its floating-rate exposure by refunding debt.