CHICAGO — Illinois Gov. Rod Blagojevich yesterday called a special session of the General Assembly for Jan. 2 in an attempt to resolve the longstanding impasse on a Chicago-area transit bailout plan that would avert deep service cuts, fare hikes, and layoffs set to take effect Jan. 20. “There will be only 18 days to work before the transit doomsday, so you should be prepared to meet as often as needed during that period,” the governor said in a letter to lawmakers. The governor and various legislative leaders have endorsed a plan to divert about $400 million in gasoline taxes collected in the Chicago area from the state general fund to transit. Action on the proposal has been stalled by the insistence of Republican leaders and downstate lawmakers that the General Assembly simultaneously adopt a new $25 billion capital budget. The state House had been scheduled to meet earlier this week on a proposal to expand gaming to finance the capital budget, but House Speaker Michael Madigan, D-Chicago, who has been feuding with the governor, cancelled it due to the lack of a final agreement on the plan. He also cited as a distraction the recent indictment of Chris Kelly, Blagojevich’s former fundraiser and point person on gaming issues, on federal tax fraud charges. The governor singled out Madigan in his letter for blame on the delay. “This delay leaves millions of people waiting in uncertainty. I had hoped to receive legislation on my desk before the end of the calendar year,” he wrote.
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The parent of New York's Metropolitan Opera fell deeper into junk-bond status this week, while the New School university has a lower investment-grade rating.
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Currently, it's a Goldilocks market, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital: "Just right enough for just enough people, and steady [enough] that there doesn't seem to be any [big] price pressure at the moment."
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"A slightly less hawkish decision than had been anticipated," said Art Hogan, B. Riley Wealth chief market strategist.
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U.S. District Judge Laura Taylor Swain suggested the board should include a contingent vehicle instrument in the proposed plan of adjustment.
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The drought-stricken Texas city could face a water emergency as soon as May or October under scenarios presented to the city council.
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There is a lot of money out there, and investors seem comfortable putting it to work.
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