Bankruptcy

Kansas Gov. Sam Brownback says he wants to resolve the state's school funding legal dispute through negotiation.

Bank of New York Mellon's suspension of bankrupt Jefferson County, Ala.'s sewer warrant payments prompted Standard & Poor's to drop its rating to D, while Moody's said investors are now subjected "to the risk of higher losses."

Texas charter school leaders say they will continue the fight for facilities funding from the state despite a recent setback in court.

Harrisburg, Pa., councilman Brad Koplinski, a major figure in the capital city's debt crisis, said he will run for Pennsylvania lieutenant governor as an advocate for localities.

Baltimore is setting a precedent by being the first large city to use long-term forecasting to avoid becoming the next bankruptcy story, city officials and their advisors said Thursday.

Reform city leaders for the now notorious Bell, Calif. are working to repair the financial damage done by eight former city leaders now being tried on charges of embezzlement and mismanagement.

A ten-year forecast commissioned by the mayor and released Wednesday reveals that Baltimore could be on a path to bankruptcy without "serious fiscal reforms."

Late Tuesday night, Judge Rakoff of the Southern District Court of New York ruled in favor of Assured Guaranty in its lawsuit brought against Flagstar Inc. for breaching its representations and warranties contract relating to over $900 million of residential mortgage-backed securities.

Moody's revised its outlook for West Penn Allegheny Health System bonds to developing from negative as it monitors an affiliation agreement with Highmark.

The trustee for bankrupt American Airlines Inc.'s $1.4 billion of New York City airport revenue bonds hopes to submit a final settlement agreement after a majority of bondholders endorsed the terms.

Texas district judge ruled Monday that the state system of funding public education is inadequate and unconstitutional.

Assured Guaranty said Monday that it disagrees with the trustee for Jefferson County, Ala.'s sewer warrants to suspend payments, and will continue to make good on its insurance policies.

Bank of New York Mellon said Friday that it will stop payments on Jefferson County, Ala.'s defaulted sewer warrants, and will seek court approval to accelerate payment of outstanding principal.

Detroit Mayor Dave Bing announced the city would close 50 parks, whittling the number of open parks down to 57, after the city council rejected a proposal to lease the city's largest park to the state for 30 years.

Fresno, after much of its debt was downgraded to junk by Moody's, is facing cash flow problems that will likely lead to more layoffs and service cuts.

Pennsylvania is distributing $8.6 million in restitution from JPMorgan Chase & Co., to municipalities and nonprofit organizations who were victims of a scheme to rig bids of municipal bond reinvestment contracts, the Pennsylvania Attorney General's office announced.

City officials recently warned that the Detroit suburb of Allen Park, which is already under state control, could run out of money by the end of February, and a new audit raises questions about the city's ability to continue "as a going concern."

An Orange County Superior Court Judge has 90 days to rule on a lawsuit filed by the California Department of Finance and the chancellor of the state's community colleges against Orange County after the county diverted money from education to balance its budget.

The majority of the 202 California cities that Standard & Poor's rates are likely to see improving credit quality in 2013 as their economies recover and revenues strengthen.

Revenues at municipalities may increase slightly in 2013 and additional municipal bankruptcies will be uncommon as state and local governments continue a slow economic recovery, speakers at the Governing Outlook conference said here Tuesday.