Midwest

Moody’s Investors Service last week downgraded Lafayette to A1 from Aa3, affecting just under $5 million of outstanding general obligation debt and $25.6 million of outstanding lease rental revenue bonds. Moody’s also dropped to $5.1 million of economic development income-tax supported bonds A3 from A2 issued by the city.

The Indiana Association of Cities and Towns said this week it would begin lobbying state lawmakers for new municipal taxing authority.

CHICAGO — The Missouri Highways and Transportation Commission enters the market beginning today with its second large financing in recent months as it sells $300 million of mostly taxable Build America Bonds, the final tranche of borrowing planned under a $2.2 billion road building program.

CHICAGO — Cook County, Ill., board commissioners will begin this week tackling President Todd Stroger’s proposed $3.56 billion all-funds 2010 budget that includes no new taxes and limited borrowing while relying on an unpopular, year-old sales tax increase that faces possible repeal.

CHICAGO — The Minneapolis-St. Paul Metropolitan Airports Commission enters the market as soon as tomorrow with its first sale this year, a $156 million refunding that should generate about $7 million in savings to help the agency as it manages through the recession and its impact on air travel and the airlines.

CHICAGO — Michigan Gov. Jennifer Granholm said she would sign the six remaining budget bills next week, completing the state’s $40 billion fiscal 2010 budget and ending a tumultuous budget season.

CHICAGO — Detroit city and school officials are promoting a controversial $500 million bond proposal for the cash-strapped Detroit Public Schools as a key to helping rebuild the struggling city.

Maple Grove, Minn., has disclosed that the Internal Revenue Service has initiated an audit of $53.8 million of bonds it issued in 2005 to finance renovations and construction to two health care facilities.

CHICAGO — Chicago Mayor Richard Daley unveiled a $6.14 billion 2010 budget yesterday that relies on spending cuts and one-time maneuvers like debt restructuring and a raid on reserves to wipe out a $520 million deficit without any new or increased taxes, fees, or fines.

CHICAGO — The promise of personal financial benefits drove former Illinois Gov. Rod Blagojevich’s decision in 2003 to choose Bear, Stearns & Co. to run the books on the state’s general obligation pension bond sale and to give his go-ahead on the day of pricing to issue the full $10 billion authorization, the governor’s former chief of staff alleged in a plea agreement with federal prosecutors filed yesterday.