A $1.5 billion California general obligation sale and a trio of mammoth note deals will headline this week's activity in the primary market amid an estimated $6.46 billion in new-issue volume. Last week, the market welcomed a revised $7.28 billion, according to Thomson Reuters.

As California legislators continue to seek solutions for the state's budget crunch, Citi will price the GO bonds tomorrow after concluding a two-day retail order period today. The deal is structured to mature serially from 2009 to 2028 with term bonds in 2033 and 2038, and is rated A1 by Moody's Investors Service and A-plus by Standard & Poor's and Fitch Ratings.

With spring rollover season in full swing, three states are planning hefty one-year note deals for this week, the largest of which is an $800 million Wisconsin offering maturing in 2009 and scheduled for competitive pricing on Thursday.

Colorado will follow suit with its $350 million offering of one-year tax and revenue anticipation notes, also on Thursday in the competitive market.

The third note sale will hail from Oregon, where the state will issue a tax anticipation note sale sized at $750 million and slated to be priced by Banc of America Securities LLC tomorrow. The notes are rated MIG1 by Moody's, SP1-plus by Standard & Poor's, and F1-plus by Fitch.

Back in the long-term market, the activity will also include at least one New York deal of significant size, a large health care offering in the Southeast, a triple-exempt Puerto Rico offering, and a potpourri of Texas deals.

The New York State Dormitory Authority will issue $440 million of personal income tax revenue debt for education projects when M.R. Beal & Co. prices the offering for institutions tomorrow, following the conclusion of a two-day retail order period today.

As of press time on Friday, the preliminary structure included serial bonds maturing from 2009 to 2028. The deal is expected to carry ratings of AAA from Standard & Poor's and AA-minus from Fitch.

Elsewhere in New York, Nassau County will issue $180 million of GO debt in a new-money and refunding sale planned for negotiated pricing by JPMorgan on Thursday after a retail order period Wednesday.

The two-pronged deal consists of $140 million of Series 2008C new-money bonds that mature serially from 2010 to 2021, and $40 million of Series 2008D refunding bonds that mature serially from 2010 to 2018.

The county's GO debt is expected to be rated A2 by Moody's and A-plus by Standard & Poor's and Fitch. JPMorgan was considering insurance from Financial Security Assurance on Friday, but as of press time had not yet made a determination.

The commonwealth of Puerto Rico will also be in the market this week with a $195 million sale of public improvement revenue bonds that will convert outstanding auction-rate securities.

The deal will convert the commonwealth's Sub-Series 2003 C-9 and was scheduled to be insured by MBIA Insurance Corp. Earmarked for pricing by Wachovia Bank NA tomorrow, the deal's structure will be concentrated between 2025 and 2028, although an underwriter last week said the firm was still hammering out the details.

In the health care sector, a $330 million refunding and new-money offering is expected from the Louisville and Jefferson County, Ky., Metropolitan Government on behalf of Jewish Hospital/St. Mary's Health Care Inc.

Morgan Stanley is expected to price the facility revenue bonds on Wednesday with a structure that includes bonds maturing from 2014 to 2037. The bonds have ratings of A3 from Moody's and A-plus from Standard & Poor's.

Much of the activity in the Southwest market this week will lead investors to Texas, where at least two large deals and a series of smaller offerings will provide a flurry of new supply.

The Texas Water Development Board will issue $257 million of revolving fund subordinate-lien revenue bonds in a negotiated deal being senior-managed by Morgan Keegan & Co.

The Series 2008B bonds, which will mature serially from 2010 to 2038, will be priced tomorrow and are expected to carry natural triple-A ratings from all three agencies.

The Port of Houston Authority in Harris County will sell $231 million of unlimited-tax refunding bonds when Merrill Lynch & Co. prices the deal on Thursday.

The bonds, which have ratings of Aa1 from Moody's and AAA from Standard & Poor's, are structured to mature from 2024 to 2033 with a term bond in 2038.

Subject to the alternative minimum tax, the bonds are payable from a separate unlimited ad valorem tax levied annually on taxable property within the county. Proceeds from the sale will be used to refund all or a part of the port authority's outstanding commercial notes, as well as refund all or a portion of the its Series 1998A unlimited-tax improvement bonds, according to the preliminary official statement.

A $191 million offering of GO and refunding bonds will also be issued this week by the Klein Independent School District.

First Southwest Co. will price the offering on Thursday with a structure that includes serial maturities from 2009 to 2038. The bonds are backed by the Texas Permanent School Fund guaranty, which garners a triple-A rating from all three agencies.

Elsewhere in the education sector, the Austin Independent School District plans to sell $100 million of refunding bonds today in the competitive market. The bonds, which mature from 2010 to 2033, have ratings of AA-plus from Standard & Poor's and AA from Fitch.

Meanwhile, a $110.4 million water system revenue sale is also on tap from the North Texas Municipal Water District in the competitive market Thursday. The bonds mature from 2009 to 2038. Ratings were not available by press time.

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