News and Information from Bond Buyer

Florida Gov. Rick Scott has ordered state agencies to prepare lists of "critical state funding needs" in the event there is a government shutdown on July 1 amid an impasse over the state's fiscal 2016 budget.

Fitch Ratings dropped Chicago's general obligation and sales tax ratings to BBB-plus from A-minus and placed them on Negative Watch over the liquidity risks posed by the city’s drop to junk by Moody’s Investors Service and its lowering of water and sewer bonds.

Allyson Belsome is returning next week to her position as senior manager for field operations in the Internal Revenue Service's tax exempt bond office, according to the IRS.

Fitch Ratings said it has downgraded the ratings on the following Chicago obligations: $8.1 billion unlimited tax GO bonds to BBB-plus from A-minus; $546.5 million (accreted value) sales tax bonds to BBB-plus from A-minus; and $200 million commercial paper notes, 2002 program series A (tax exempt) and B (taxable) bank bond ratings to BBB from BBB-plus.

It will be yet another busy week in the primary market as issuers continue to take advantage of the current low interest rate environment. Long-term municipal bond volume for the week of May 18 is expected to total roughly $9 billion, according to estimates from Ipreo and The Bond Buyer.

California Gov. Jerry Brown's new budget proposal offers a state earned income tax credit, a large increase in K-12 education spending, and a big deposit in the state rainy day fund.

Standard & Poor's Ratings Services said it raised its rating on Daytona Beach, Fla.'s general obligation bonds to AA from AA-minus.

Standard & Poor's Ratings Services said it raised its underlying rating on Lawrence Township Metropolitan School District, Ind.'s general obligation bonds to A from A-minus.

A Senate proposal would stretch the current Highway Trust Fund extension to keep federal transportation dollars flowing.

The U.S. government wrongfully extended the statute of limitations to obtain bid-rigging convictions for three ex-UBS bankers, lawyers told an appeals court.

The economic decisions municipal governments are making right now could serve as a good guide to how they might behave under fiscal stress, Public Financial Management managing director Michael Nadol told muni analysts Friday.

The National Council of State Housing Agencies is urging the Treasury Department and the Internal Revenue Service to include several items on its 2015-2016 priority guidance plan that would help state agencies effectively administer housing bond programs.

Puerto Rico’s leaders reached a major tax and spending pact Friday morning that would achieve a balanced budget but may hurt the island’s economy.

A former Oklahoma lawmaker is seeking to have $2 billion of budget bills from the past three years declared unconstitutional by the state Supreme Court.

A proposed three-year $221 million rate hike by the Long Island Power Authority and PSEG Long Island should be slashed by two-thirds, according to the New York Department of Public Service.

With its economy recovering, Arizona this month paid off the last of $44 million in federal loans for unemployment benefits, officials said.

Prices of top-rated municipal bonds were mixed at mid-session, traders said, as yields on some maturities were unchanged to one basis point lower.

Congressman Pedro Pierluisi is urging President Obama to convene an interagency meeting to discuss resolution of a Medicaid funding problem that could hit Puerto Rico as soon as September 2017.

New Jersey's Municipal Qualified Bond Act is helping distressed Atlantic City, N.J. access the bond markets this month with deals that highlight the role state credit enhancement programs can play.