Midwest

Chicago Public Schools began the work of chipping away at a $215 million budget hole caused by Gov. Bruce Rauner’s recent veto of funds to help cover a $720 million teachers’ pension payment.

A $330 million surplus this year that resulted from better than projected fund balances and other one-time savings will help out the fiscal 2018 budget, according to new state financial projections.

Chicago will collaborate with federal officials to secure a $1 billion low-interest loan for Union Station upgrade.

Chicago’s fiscal position and Chicago Public Schools’ deep distress are the subject of two special reports published Thursday by Moody’s Investors Service.

Most Nebraskans could see an income tax cut beginning in 2020 under a tax overhaul proposal Gov. Pete Ricketts announced Thursday.

So-called intervention bankruptcy – combining federal and state resources – could help governments manage municipal insolvency, said a Manhattan Institute report.

Illinois opened its new legislative session Wednesday with a renewed warning from Fitch Ratings that the clock is ticking on a possible downgrade if lawmakers and Gov. Bruce Rauner can’t break their budget stalemate.

Indiana Gov. Eric Holcomb unveiled a nearly $31.8 billion, two-year spending plan he said achieves his education funding and economic development goals while preserving the state's reserves and top credit marks.

Chicago Mayor Rahm Emanuel isn’t happy with Moody’s Investors Service, so he’s trying to make the rating agency go away.

Municipal retirement systems will be required to report on their unfunded pension and retiree health care costs annually under legislation signed by Michigan Gov. Rick Snyder.