Economy

DALLAS - The Texas Turnpike Authority is preparing to refund $150 million of 2002 variable-rate bonds insured by formerly triple-A rated Ambac Assurance Corp. with uninsured bonds carrying triple-B-plus ratings.

A task force appointed by Gov. Kathleen Sebelius in 2008 to develop a new transportation funding strategy for Kansas has recommended loosening the rules for issuing highway bonds.

Gov. Mike Beebe last week signed a bill increasing in Arkansas’ cigarette tax that will generate $86 million a year for health care, including a statewide trauma system for emergency rooms and an expansion of health insurance for children.

CHICAGO - A federal Second Circuit Appellate Court panel has upheld a lower court decision allowing a majority of investors who held $414 million of Kenton County, Ky., Airport Board bonds issued for Delta Air Lines Inc. to enter into a settlement as part of Delta's 2005 bankruptcy over the objections of a small group of bondholders.

Massachusetts Gov. Deval Patrick last week proposed increasing the state's gas tax by 19 cents per gallon and reorganizing its transportation bureaucracy.

BRADENTON, Fla. - Florida Gov. Charlie Crist on Friday proposed a $66.5 billion budget for fiscal 2010 that includes $2.5 billion of debt.

The University of Pennsylvania and the University of Pittsburgh will sell long-term bonds over the next two weeks to refinance variable-rate debt and fund various projects.

DALLAS - The North Texas Tollway Authority said yesterday that it had restated its 2008 financial statement to correct a $105.5 million accounting error.

States and localities that adhere to prevailing wage standards and that have projects that can be built with American materials could be better positioned to receive stimulus funding for infrastructure projects, although it may take several months for stimulus funds to trickle down to local levels, sources said this week.

DALLAS - The Louisiana State Bond Commission delayed a decision yesterday on a planned May sale of $685 million of gasoline and fuel tax bonds after transportation department officials asked for more time to negotiate a financing plan for the bonds.

DALLAS - Kansas Gov. Kathleen Sebelius signed a budget-balancing bill Tuesday, avoiding a shutdown of state government over a dispute with Republican leaders in the Legislature.

Louisiana highway officials told a state legislative subcommittee last week that the bond-financed John J. Audubon Bridge over the Mississippi River should open in November.

The Orlando-Orange County Expressway Authority said Tuesday that dwindling toll revenues will require an increase in tolls to protect the agency’s bond rating, according to a local report by WFTV.

The Saint Raphael Obligated Group has defaulted on certain covenants attached to $59.9 million of tax-exempt bonds issued in 2004 on its behalf by the Connecticut Health and Educational Facilities Authority, according to a material event notice.

DALLAS - A powerful Texas lawmaker who steered milestone transportation legislation through the 2007 session has introduced a bill that would allow counties to raise fuel taxes and fees to bond for rail and road construction.

The Massachusetts Bay Transportation Authority faces a $165 million deficit for fiscal 2010, which begins July 1, as debt service costs for the transit agency will increase by $77 million to $445 million.

Standard & Poor’s last week downgraded North Country Health Services’ debt to BBB-plus from A due to poor operating results. The action affects $13.3 million of debt sold in 2006 through the city of Bemidji and $37 million of debt sold in 2002.

CHICAGO - St. Louis-based Ascension Health today will remarket $570 million of weekly variable-rate bonds as fixed-rate debt in the first of three planned mode conversions over the next month.

The University of Minnesota’s plans for a new $275 million children’s hospital received a boost last week with the announcement of a $50 million gift.

WASHINGTON - The $787 billion stimulus package signed into law by President Obama yesterday may spur smaller issuers to increase debt issuance through tax code changes, but may also limit the debt that is sold for transportation, water and wastewater, and other infrastructure projects in the near term because of the new federal funds provided for them.