Midwest

In a proposed $72 billion budget, Ohio lawmakers dropped all of Gov. John Kasich's proposals to increase taxes to offset a large income-tax cut, while keeping the income tax cut.

Ill. Gov. Bruce Rauner's proposed $2.2 billion pension reform plan needs a thorough review to determine its long-term impact and whether it runs afoul of federal rules ahead of any legislative vote, two Illinois lawmakers said.

Illinois Gov. Bruce Rauner has tapped an Illinois banker -- Rob Funderburg -- to lead the Illinois Finance Authority board.

The $1.3 billion sweep of non general fund accounts to help close a shortfall in Illinois' current budget drew $300 from key transportation funds used to pay for capital projects and cover debt service, according to a report from a local government watchdog organization.

Hoosier lawmakers are revamping the state's school funding formula to boost money for growing suburban districts in a move that critics say will challenge already struggling urban districts like Indianapolis and Gary.

Underwriters and investors in billions of dollars in debt sold to finance the Prairie State coal-fired energy plant should come together to discuss relief for local municipalities burdened by the plant’s higher energy costs, according to an environmental group.

A struggling Cleveland suburb that is in a state of fiscal emergency wants the state to restore the $6.7 million in local government aid cuts.

Two years after defaulting on a bond payment, the school district of Pontiac, Mich. has stabilized under state oversight but could go broke by July without additional aid, according to Moody's Investors Service.

The St. Louis public agency helping in efforts to build a new stadium for the Rams football team is seeking clarity from the courts over whether the city can contribute financially to the project without a public vote.

Moody’s investors Service socked a struggling Illinois school district with a four-notch downgrade, putting on the lowest investment grade run and warning that a drop to junk could loom.