Midwest

Oakland County, Mich., last week approved a $1.27 billion three-year general-fund budget that includes no tax increases and $500 bonuses for most full-time employees in the first year.

Moody's Investors Service lowered its rating by three notches to A3 from Aa3 and assigned a negative outlook to Brainerd, Minn.'s $8.9 million of outstanding electric utility revenue bonds. The city issued the debt in 2007. The bonds are secured by net revenues of the electric utility.

Local prosecutors in Lee County, Ill., last week filed dozens of felony theft charges against Rita Crundwell, the former comptroller of Dixon as part of an ongoing local and federal probe into the former official, who is accused of pocketing more than $50 million in public funds to support a lavish lifestyle.

Holy Cross Hospital and Sinai Health System, both in Illinois, announced the signing of a letter of intent to merge in September.

Chicago has trimmed about $71 million from the projected $369 million gap looming in its 2013 budget that is to be unveiled next month.

The Minnesota Office of Higher Education will price $375 million of new-money and refunding adjustable rate student loan program bonds Tuesday.

The Illinois Teachers' Retirement System's adoption of a lower projected rate of return on investments and other assumption changes will hike the state's scheduled payment in the next fiscal year by $470 million.

Omaha lost one of its two prized triple-A ratings Friday when Moody's Investors Service downgraded the city to Aa1. But the move did not mean much of a hit to the city's borrowing costs when it headed to market Monday.

A state court ruling overturning portions of Wisconsin's controversial law curtailing collective bargaining rights could negatively impact local governments if it stands, Moody's warned.

A year after firing its new CEO, the Wayne County Airport Authority, Michigan has hired the airport's long-time CFO Thomas Naughton to serve in the top position.