Midwest

The bond insurers that wrap Detroit's unlimited-tax general obligation bonds have been ordered into a Monday mediation session with the city several weeks after the judge overseeing the case said he would issue a ruling on whether or not the city can treat the debt as unsecured.

Minnesota lawmakers were poised Thursday to vote on a plan to tap $434 million of the state's $1.2 billion budget surplus for tax relief and to set aside another $150 million to bolster budget reserves.

Illinois would impose an income tax surcharge on the state's millionaires to raise $1 billion of new revenue for school funding under a constitutional amendment proposed by state House Speaker Michael Madigan

Cincinnati's new mayor wants the federal court to organize all the city's retirees and employees into a single class and hammer out a consent agreement in court-ordered mediation in order to deal with the city's growing pension headache.

Detroit has reportedly yet to finalize a crucial settlement with its interest-rate swap counterparties.

Michigan Gov. Rick Snyder told local reporters that he wants Detroit to reach an agreement with its retirees to help advance legislation that would appropriate $350 million in state funds for the city's unfunded pensions.

Wisconsin received the AAA rating from Kroll Bond Rating Agency on its transportation revenue bond credit ahead of a nearly $400 million sale slated for Thursday. The other agencies rate the bonds in the mid- to high double-A category.

After Gov. Rick Snyder affirmed his declaration of fiscal emergency, the Detroit Suburb of Royal Oak Township now has seven days to choose one of four options, including Chapter 9, to address the problem.

Illinois' economy, debts, and the fate of an expiring income tax hike are expected to take center stage in the governor's match between Democratic incumbent Pat Quinn and Republican businessman Bruce Rauner.

Ohio Gov. John Kasich has introduced a new two year capital bill that spends $2.4 billion for capital projects and relies on $2.1 billion of new-money borrowing.