New York

The Metropolitan Transportation Authority did not violate New York laws when it agreed to sell the development rights over rail yards in Brooklyn to Forest City Ratner Cos., a state Supreme Court judge ruled last week.

Natural gas drilling in upstate New York could force New York City to build a multibillion-dollar water filtration plant, substantially raising water rates in the city, says a report released last week by the city's Independent Budget Office.

New York Gov. David Paterson's order to withhold $582 million of payments from school districts was unconstitutional, plaintiffs charged in a lawsuit filed in State Supreme Court in Albany yesterday.

In a reprise of last year, New York's Metropolitan Transportation Authority yesterday passed a "doomsday" budget that slashes services, but on a delayed schedule.

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.