Pennsylvania

Pennsylvania officials plan to price $775 million of new-money, general obligation debt in mid-January after legislators yesterday passed the state's fiscal 2010 Capital Debt Act.

The Federal Housing Administration, insurer of nearly $20 million of North Philadelphia Health System Series 1997A bonds, will not acquire the borrower’s property and outstanding debt, as Bank of New York Mellon, trustee of the 1997 bonds, agreed to withdraw its notice of mortgage assignment to the U.S. Department of Housing and Urban Development.

Fitch Ratings Monday downgraded Philadelphia to BBB from BBB-plus and removed the credit from negative watch, affecting $1.1 billion of general obligation debt. The outlook is stable.

Pennsylvania’s unpaid bills are piling up, and the state is about $375 million short of funds needed to pay contractors and vendors on infrastructure projects, Budget Secretary Mary Soderberg warned yesterday.

The Pennsylvania Turnpike Commission is watching for an opportunity to refinance nearly $600 million of floating-rate debt, including variable-rate bonds now owned by banks.

Like many mayors, it’s been a difficult year for Philadelphia Mayor Michael Nutter, as the city was forced to cut its five-year budget by $2 billion and watch state lawmakers delay action on measures that eventually helped close the city’s current budget and avoid enormous layoffs and service cuts.

Pennsylvania must delay an anticipated $775 million general obligation bond sale as lawmakers this month failed to move on the state’s $1.68 billion Capital Debt Act, which would authorize the deal.

Pennsylvania borrowing remains on hold as the General Assembly may not vote until early next week on a table games bill, a measure that lawmakers must pass before approving the state’s fiscal 2010 Capital Debt Act.

Bonds from the Southern Pennsylvania Transportation Authority will not be affected by a workers’ strike that halted Philadelphia’s subway and bus service beginning early Tuesday morning.

Pennsylvania’s year-to-date revenue collections are $160.2 million, or 1.8%, below budgeted revenues, with sluggish personal income tax and sales tax receipts accounting for most of the revenue gap.

Pennsylvania's Commonwealth Financing Authority will issue $400 million of debt Wednesday, including $335.6 million of taxable Build America Bonds, for water and sewer projects throughout the state.

The Pennsylvania Turnpike Commission Thursday evening re-filed its application to the Federal Highway Administration to implement tolls on Interstate 80.

Capital projects at higher educational institutions, prisons, and construction of a new convention center in Philadelphia could hit a financing roadblock if state legislators in November fail to pass ­Pennsylvania’s fiscal 2010 Capital Debt Act.

Standard & Poor’s last week withdrew its rating on North Philadelphia Health System’s 1997A bonds after downgrading the debt to CCC from AAA.

Pennsylvania Gov. Edward Rendell last week announced a $22 million allocation towards technology companies, creating a potential 375 jobs in the industry.

Fitch Ratings last week affirmed its AA rating and stable outlook on ­Pennsylvania’s approximately $8.7 billion of general obligation debt.

Pennsylvania Gov. Edward Rendell is waiting for the legislature to deal him one last card in the state’s long-playing budget stalemate — a bill that would generate about $200 million this year by implementing blackjack and poker games at the state’s slot casinos.

Philadelphia is set to give pink slips to about 3,000 city employees Friday, but a bill that sits in the Pennsylvania Senate could help the city balance its fiscal 2010 budget and avert the massive layoffs and service reductions.

A fiscal oversight board Friday granted Philadelphia additional time to receive legislative approval for initiatives that would help the city balance its fiscal 2010 budget and avoid massive layoffs and service ­reductions.

Reading could be placed under state oversight to help it address budget deficits and shrinking revenue if Pennsylvania officials approve the city’s request for supervision.