New York

New York's Metropolitan Transportation Authority plans major service cuts next year to deal with revenue shortfalls in the current month and beyond, the agency announced yesterday.

New York municipalities are pooling their bond issuance to take advantage of “super BABs” this week in what is expected to be the first of up to five deals.

The Port Authority of New York and New Jersey passed an austere $6.3 billion operating and capital budget yesterday that keeps operating growth at zero in 2010. The agency also cut its 2007-2016 capital plan by $5 billion to $24.5 billion.

New York Gov. David Paterson said yesterday that he will order the withholding of payments to local governments to deal with a $1 billion shortfall this month.

New York City has nearly selected all the projects for its $121 million allocation of Recovery Zone facility bonds, pending board approval, the conduit issuer said yesterday.

WASHINGTON — New York Liberty Bond issuers — including the Liberty Development Corp., which planned to sell $2.59 billion of the bonds this month to beat the current deadline — would have another year to put together deals under legislation introduced yesterday by the top tax writer in the House.

New York City this week will price roughly $1.4 billion of general obligation debt, including $616 million of taxable Build America Bonds, to help finance capital improvements.

Priscilla Almodovar, president and chief executive officer of the New York State Housing Finance Agency and the State of New York Mortgage Agency, resigned Friday.

New York’s largest housing finance agencies plan to sell more than $1 billion of bonds to Freddie Mac and Fannie Mae this month under a new federal program aimed at giving a shot in the arm to HFAs.

The battle to rid New York State pension and retirement funds of pay-to-play and placement agent “kick-backs” crept steadily forward today after Elliot Broidy, founder and chairman of Markstone Capital Group, plead guilty to offering millions of dollars in bribes for investment contracts.

The Forest City Ratner Cos. is banking on luxury seating, naming rights, and sponsorships to back $500 million of tax-exempt bonds to be issued for a new arena in Brooklyn.

The New York Legislature yesterday passed a $2.7 billion budget-deficit reduction program, pension reform, and public authorities reform.

The Liberty Development Corp. plans to market $2.59 billion of tax-exempt Liberty Bonds before Christmas for development at the World Trade Center site in order to meet a year-end deadline.

The Dormitory Authority of the State of New York adopted new borrowing guidelines for lower-rated credits at its monthly board meeting yesterday. DASNY’s board also gave final approval to $1.43 billion of bonds, mostly on behalf of the state.

Moody’s Investors Service and Standard & Poor’s gave the bonds for New York City’s controversial Atlantic Yards basketball arena their lowest investment-grade ratings yesterday.

New York Gov. David Paterson said yesterday that he will not oppose the Legislature’s budget-deficit proposal even though it falls short of closing a $3.2 billion current year gap.

New York’s budget gap talks continued with little apparent action yesterday afternoon after Gov. David Paterson on Sunday announced he would act administratively to close $1.6 billion of the state’s $3.2 billion fiscal 2010 deficit. Both chambers of the Legislature met in special session to deal with the budget deficit but neither the Senate nor Assembly had taken up any legislation at press time.

After years of controversy, the Atlantic Yards basketball arena project in Brooklyn yesterday received board approval to issue bonds next month and won a major lawsuit that sought to overturn New York State’s use of eminent domain.

Financial Guaranty Insurance Corp. has been blocked from paying claims until it repairs its tattered finances under an order from New York State regulators.

New York Gov. David Paterson yesterday called on the Legislature to either pass a modified $3.2 billion deficit reduction plan or grant him the authority to do it himself. The Legislature is in its third week of an extraordinary session to cut the current-year budget gap but has yet to reach an agreement with the governor.