New York

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.

New York could face a downgrade or outlook change if nothing is done to close the state’s $3.2 billion current year deficit, or if actions to close the gap are primarily one-shots and revenues fall below projections, Moody’s Investors Service warned in a credit report last week.

As a tower begins to rise at the World Trade Center site in lower Manhattan, the property’s owner, the Port Authority of New York and New Jersey, yesterday authorized the sale of $1 billion of taxable bonds to finance further construction.

New York lawmakers reached a compromise on public authority reform, Gov. David Paterson announced yesterday evening at a press conference in Albany flanked by the Democratic Legislative leadership.

New York’s Metropolitan Transportation Authority proposed a balanced operating budget for 2010 yesterday but set aside additional reserves in case its assumptions prove overly optimistic.

Wall Street revenues are recovering more quickly than expected but compensation reform could reduce the positive effect on New York’s bottom line, according to a report released yesterday by state Comptroller Thomas DiNapoli.

New York City Mayor Michael Bloomberg is seeking to cut fiscal 2010 expenditures by $550 million and reduce next year’s spending by $1.2 billion.

New York’s Metropolitan Transportation Authority is looking to boost its bond issuance for fiscal 2009 by $200 million, with its next sale set for early to mid-December.

New York lawmakers Tuesday evening passed legislation during an extraordinary session that allows the New York Municipal Bond Bank Agency to sell recovery zone economic development bonds and Build America Bonds in a pooled issuance to generate lower borrowing costs for local governments and municipalities.

New York State plans to market $100 million of tax-exempt fixed-rate student loan bonds this week under a new program. The New York Higher Education Finance Authority will offer the debt to retail investors tomorrow, with institutional sales beginning on Thursday.

The Long Island Power Authority plans to sell $200 million of new-money bonds next year, according to a proposed 2010 budget released last week. LIPA also expects to refund $400 million of outstanding debt next year.