Midwest

CHICAGO — A Wisconsin Supreme Court decision overturning the state diversion of $200 million from a medical malpractice fund will force a new round of budget cuts, Gov. Jim Doyle’s administration said Tuesday.

CHICAGO — Indiana Treasurer Richard Murdock has tapped finance veteran Lisa Cottingham to serve as the new director of the Indiana Bond Bank, one of the state’s largest borrowers.

Missouri Gov. Jay Nixon on Monday signed reform legislation that will require new state employees to contribute to their retirement fund and to work longer before collecting their pensions.

The Detroit Economic Development Corp. last week approved an inducement resolution to issue $15 million of recovery zone facility bonds to finance construction of a new medical office building in the city.

CHICAGO — Lawyers for former Illinois Gov. Rod Blagojevich and his older brother Robert launched their defense Monday against allegations the ex-governor sought to use his official powers to personally profit and build his campaign coffers.

CHICAGO — Double-A rated South Dakota closed fiscal 2010 without tapping into state reserves to wipe out an estimated $3.5 million deficit.

CHICAGO — Even with a water rate increase expected to boost revenues, the Xenia Rural Water District still faces possible insolvency as its revenues can’t keep up with repayment of its $140 million of debt, according to a new Iowa state auditor’s report.

CHICAGO — Indiana drained nearly half of its prized $1.3 billion reserve fund last year to offset revenue collections that tumbled more than $1 billion below original budget projections.

CHICAGO — A federal court ruling that lets the Lac du Flambeau tribe off the hook for repayment of $46.6 million of tribal gaming revenue bonds could harm the municipal market as a whole because the ruling undercuts investor rights in bond indentures and confidence in disclosure, the National Federation of Municipal Analysts warns.

CHICAGO — Fitch Ratings stripped $9.3 million of special-assessment revenue bonds from the Toledo-Lucas County Port Authority of their investment-grade rating Wednesday.