Northeast

The Massachusetts Bay Transportation Authority plans tomorrow to sell its first Build America Bond deal, set for $213.8 million, after offering $39.3 million of traditional tax-exempt debt to retail investors today.

New York Gov. David Paterson yesterday proposed spending cuts and revenue-raising measures to close a $3 billion gap in the current fiscal year.

Massachusetts Gov. Deval Patrick Thursday said fiscal 2010 tax revenue will come in $600 million below prior estimates, and that he would potentially eliminate nearly 2,000 positions and implement spending reductions to offset the state’s underperforming tax receipts.

Standard & Poor’s yesterday dropped New Jersey’s largest health care provider, Saint Barnabas Health Care System to BB-plus from BBB-minus, affecting more than $800 million of outstanding debt. The outlook is negative.

Halfway into its fiscal year, New York’s projected budget deficit has grown to $4.1 billion, up from $3 billion last month, as personal income tax revenues have dropped, state Comptroller Thomas DiNapoli said yesterday.

The Mount Sinai School of Medicine at New York University is going to market next week with $369.6 million of tax-exempt bonds. The Dormitory Authority of the State of New York will offer the fixed-rate bonds to retail investors on Tuesday and to institutional investors on Wednesday.

The Metropolitan Transportation Authority broke state law when it agreed to new sale terms for the Vanderbilt rail yards in Brooklyn, plaintiffs allege in a suit filed yesterday in New York State Supreme Court.

The Landmark Medical Center in Woonsocket, R.I., defaulted on scheduled interest and principal payments on bonds maturing this month, triggering a payment by its insurer, according to a notice posted last week by its trustee.

Pennsylvania Gov. Edward Rendell is waiting for the legislature to deal him one last card in the state’s long-playing budget stalemate — a bill that would generate about $200 million this year by implementing blackjack and poker games at the state’s slot casinos.

The Metropolitan Transportation Authority’s $28.08 billion five year-capital plan is unaffordable, New York Gov. David Paterson said yesterday, adding that the State Department of Transportation’s $25.8 billion five-year plan is too costly as well.