News and Information from Bond Buyer

The State Public Works Board of California is planning to sell $230 million of lease revenue bonds in a refunding deal next week.

Most states have made major investments in corrections, raising prison populations to historic highs, while they have spent far less on educating children and young adults, the Center on Budget and Policy Priorities found in a report.

Members of Detroit's two pension systems and Wayne County's retirement system have the systems' actuarial firm, alleging that consultants used faulty assumptions that contributed to underfunding that some say helped drive the city into bankruptcy.

An ruling from a Superior Court judge during a hearing scheduled for Oct. 31 could bring the end to a lawsuit brought by Ontario, California seeking the return of its local airport from the control of Los Angeles.

Barraged with political advertisements about the state's fiscal mess, Illinois voters will elect leaders for two fiscal offices — comptroller and treasurer. Incumbent comptroller Judy Baar Topinka, a Republican, is running for re-election against Democrat Sheila Simon.

Moody's Investors Service said it has assigned a rating of Aa3 to the state of California's upcoming sale of $1.2 billion general obligation bonds.

A proposed $3 billion rapid passenger rail system in the Midwest would cut the five-hour train trip between Chicago to Detroit by almost two hours.

Standard & Poor's Ratings Services said it raised its rating to BB-plus from B on Harris County-Houston Sports Authority, Texas' existing junior-lien series 1998-B, 1998-C, 2001-B, and 2001-H bonds.

Though the municipal market has recently been focused on primary market disclosure compliance, dealers should expect the Securities and Exchange Commission to start policing the secondary market just as diligently, former SEC enforcement lawyer Peter Chan told The Bond Buyer.

Absent policy and legislative changes, mandatory social spending will pressure the U.S. government's fiscal profile and credit standing toward the end of the decade, Moody's Investors Service said in a report released Wednesday.

The Federal Reserve will stop its monthly purchases of agency mortgage-backed securities and longer-term Treasury securities under its quantitative easing program, while forward guidance maintains interest rates will remain at zero to 0.25% range, for a "considerable time," the Federal Open Market Committee announced Wednesday after its two-day meeting.

Louisville, Ky., issuers bring $360 million in bonds to the market during November as investors continue to search for quality amid uncertain conditions.

A lull continued over the municipal market at midday Wednesday with low yields an obstacle to getting investors interested.

The operator of the Indiana Toll Road won federal court approval for a bankruptcy plan that will either sell its 75-year lease of the highway or restructure the company with $2.75 billion of new debt.

The Treasury Department auctioned $35 billion of five-year notes, with a 1 1/2% coupon, a 1.567% high yield, a price of 99.678995.

New York's Metropolitan Transportation Authority will look to keep biennial fare increases to the 4% inflation rate, said chairman Thomas Prendergast.

The Treasury Department Wednesday auctioned $15 billion of two-year floating rate notes with a high discount margin of 0.053%, at a 0.053% spread, a price of par.

Doral Financial in San Juan, Puerto Rico, has provided the Federal Deposit Insurance Corp. with its capital restoration and contingency plans.

Municipals were unchanged to slightly weaker Wednesday morning as traders awaited the outcome of the two-day meeting of the Federal Open Market Committee.

Fitch Ratings said it assigned an A rating to $1.2 billion in general obligation bonds of the state of California, consisting of: $630 million various purpose GO bonds; $300 million various purpose GO refunding bonds; and $270 million federally taxable various purpose GO bonds.