Midwest

Top-rated Missouri - a rare borrower - will take competitive bids this summer on two refunding deals that will achieve significant present-value savings and provide $44 million in fiscal 2013 budget relief.

The Lincoln Electric System, a city-owned utility that boasts some of the lowest electric rates in the country, brings $210 million of bonds to market, starting with a one-day retail order period Wednesday.

The financially-strapped Chicago Public Schools system released a $5.2 billion proposed budget for fiscal 2013 that closes a $665 million gap with a property tax hike, operating cuts, and by digging deeply into reserves and draining its unreserved fund balance.

The city brings $447 million of gilt-rated debt to market Tuesday in what will be its largest general obligation sale to date and one of the larger deals to hit the market next week.

Wisconsin's retirement system is solid at full funded status, has the ability to weather fiscal turmoil through annuity changes, and there's no need to tinker with it, concludes a new state report.

Michigan and city officials reached an agreement with Bank of America Merrill Lynch that pushes back by two weeks the payment date on $80 million of privately placed notes. The extension gives the city more time to resolve a dispute with its top attorney, who is challenging the city's consent decree with the state.

Budget officials in the two Midwest states report good news heading into fiscal 2013, as the states benefit from better-than-expected revenues. Both states will deposit the surpluses into rainy-day funds.

The Lombard, Ill. Public Facilities Corp. drew $1.8 million from reserves to cover debt-service owed this month on $190 million of hotel and conference center debt.

Michigan Treasurer Andy Dillon last week recommended that the state launch a formal investigation into the finances of Allen Park, which has struggled with growing deficits since issuing $31 million of bonds in 2009.

Illinois Gov. Pat Quinn signs a $33.7 billion general fund budget for new fiscal year that includes $2.7 billion Medicaid restructuring, makes $1.3 billion dent in overdue bills, and cuts discretionary spending. Quinn is pushing lawmakers to act on pension reforms to stabilize state fiscal house.