Midwest

CHICAGO — The Illinois Supreme Court on Wednesday agreed to hear Illinois’ appeal of a lower court decision invalidating the state’s $31 billion capital budget and the funding streams that support it.

CHICAGO — Faced with the headline risk associated with ongoing reports over its fiscal struggles, Detroit Public Schools was forced to pay a steep premium Thursday on its sale of $231 million of short-term notes.

CHICAGO — Nebraska would issue up to $500 million of bonds backed by a slice of its sales tax under a bill likely to be debated by the Legislature in the next two weeks.

CHICAGO — As Illinois lawmakers face mounting pressure to ease the strains of pension funding, a new report from Senate Democrats throws cold water on the idea of reducing future benefits for current employees, contending any legislative curbs would run afoul of the state’s constitution.

CHICAGO — Wisconsin Gov. Scott Walker toured the state Wednesday to promote his $59 billion budget proposal that would eliminate a $3.6 billion deficit with steep spending cuts that Democrats, school districts, and some local governments warned would strain budgets and hurt students, services and jobs.

CHICAGO — Bondholders owed more than $50 million by an Indiana hospital in receivership would receive a mere $3 million or less under a proposed sale of the facility’s most valuable assets.

CHICAGO — A survey that included more than half of Michigan’s counties show they are struggling with unfunded other post-employment benefit liabilities of $3 billion.

CHICAGO — Kansas City, Mo., will enter the market later this month with a $55 million new-money and refunding general obligation issue that comes as the city is bracing for a public vote next month on whether the city can continue to collect an earnings tax that serves as its main revenue source.

Cook County has a new $3.1 billion 2012 budget that relies on 10 furlough days to avoid substantial layoffs and rolls back an unpopular sales-tax increase starting next year. The budget balances a record $487 million shortfall.

CHICAGO — Minnesota Gov. Mark Dayton on Monday dropped his proposal for an income tax surcharge on top earners after the state announced a new revenue forecast that trimmed nearly $1.2 billion off the $6.2 billion deficit looming in the next two-year budget cycle.