Midwest

Moody’s Investors Service has downgraded Davenport, Iowa’s general obligation bond rating one notch to Aa2 ahead of its sale of $31.3 million of new debt.

The Indiana Senate and the House have both passed separate measures that would eliminate or significantly reduce the state’s inheritance tax, which generates roughly $150 million annually.

Chicago Mayor Rahm Emanuel and Cook County Board President Toni Preckwinkle last week said the two governments saved $20.5 million by collaborating in some areas over the last six months of 2011.

CHICAGO — With Kansas City, Mo., set to exhaust its voter-approved general obligation bonding authority with an issue next month, Mayor Sly James is hoping to win City Council and voter support for as much as $1 billion of new authority for infrastructure improvements over the next decade.

With tobacco consumption continuing to decline, Fitch Ratings last week downgraded $9 billion of tobacco bonds issued by Ohio and California after the two states were forced to draw on reserves to make their Dec. 1 payments.

CHICAGO — Chicago Mayor Rahm Emanuel's finance team will introduce to the City Council this week an ordinance seeking approval to refund up to $1.75 billion of O'Hare International Airport general airport revenue bonds and passenger facility charge bonds for savings.

The Internal Revenue Service has told the Nebraska Public Power District that $10 million of the $50.36 million of Build America Bonds it issued in June 2009 may not qualify for the 35% interest subsidy it receives from the Treasury Department because of a dispute over the issue price of the bonds.

CHICAGO — Chicago-based Loop Capital Markets LLC has opened a public finance office in Little Rock, Ark., the first in a series of new regions it hopes to establish a presence in this year as it extends its reach from major metropolitan areas to smaller urban markets.

Michigan Gov. Rick Snyder unveiled a $48.2 billion fiscal 2013 budget that he said reflects the state's improving fiscal position, boosting spending for education and roads and making a deposit into the state's anemic rainy-day fund.

CHICAGO — Missouri transportation officials are seeking legislative authority to turn Interstate 70 into a toll road to fund a $2 billion to $4 billion rebuilding and expansion of the aging highway, possibly through a pubic-private partnership.