Economy

While President-Elect Barack Obama has directed his economic recovery team to develop a plan to invest in infrastructure nationwide, create millions of jobs, modernize schools, and make buildings more energy-efficient, both the details of the plan and the extent to which municipal bonds may play a role are unclear.

WASHINGTON - The problems facing transportation infrastructure financing are so expansive that all options must be considered, including public-private partnerships and a possible alternative to the federal gas tax to fund the highway trust fund, JPMorgan's Jane Garvey said Sunday at a conference here.

DALLAS - A year after tripling its debt load, the North Texas Tollway Authority is trimming 2009 revenue projections by $25 million, or 7%, due to worsening economic conditions, the authority said.

The Joint Committee on Transportation last week began a series of four public hearings regarding the Massachusetts Turnpike Authority, along with transportation financing issues throughout the state.

WASHINGTON - After more than three months of watching the municipal bond market seize up and then continue to stumble, the Maryland Transportation Authority is on the calendar to come back to market with $425 million of grant anticipation revenue vehicle bonds in a negotiated deal led by Merrill Lynch & Co. Wednesday and Thursday.

A plan to extend the Bay Area Rapid Transit system to Silicon Valley scored a come-from-behind victory this week, as the Santa Clara County registrar of voters certified that an eighth-cent sales tax to operate the new line was approved by voters last month.

New York's Metropolitan Transportation Authority could issue as much as $30 billion of bonds over five years under a new credit backed by a payroll tax, according to a proposal released yesterday by a state commission.

The $5.2 billion Dulles Metrorail extension, all but dead nearly a year ago, was revived Wednesday when the Federal Transit Administration signed off on the plan, essentially guaranteeing $900 million of funding for a project that will be partly financed with more than $2 billion of tax-exempt bonds.

CHICAGO - The Chicago City Council overwhelmingly approved a 75-year lease of the city's parking meter system to a private group for $1.157 billion, just two days after Mayor Richard Daley unveiled the winning bid and his plans for the proceeds.

SAN FRANCISCO - Kevin Kone sold $90 million of notes with a 1.5% yield this week, and he's going on vacation.

After more than a year of effort, Atlanta finally has its first formal comprehensive transportation plan.

Declining revenues and a potential default event prompted Fitch Ratings late Tuesday to downgrade Saint Barnabas Health Care System to BB-plus from BBB, affecting roughly $900 million of debt. Fitch also revised the outlook to negative.

CHICAGO - Fitch Ratings yesterday revised to negative from stable its outlook on the U.S. not-for-profit hospital sector, citing a slew of capital and operational challenges.

CHICAGO - Mayor Richard Daley yesterday announced a winning bid of $1.157 billion from a private consortium to lease Chicago's parking meter system for 75 years, with more than half of the proceeds earmarked to see the city through the current recession.

DALLAS - A heavily traveled turnpike north of Austin will become the first part of a tollway system under a finance plan approved by regional planners.

Standard & Poor's downgraded the New York State Thruway Authority to A-plus with a stable outlook from AA-minus yesterday, affecting $2.4 billion of outstanding general revenue bonds.

Condell Medical Center in Libertyville has agreed to pay the federal and state governments $36 million under a settlement that resolves the 283-bed hospital’s improper collection of Medicare and Medicaid payments.

House Democratic leaders yesterday said they will have an economic recovery package ready for Congress to consider when it begins its new session on Jan. 6 that includes billions of dollars for infrastructure projects and other initiatives to spur job growth, as well as proposals from President-elect Barack Obama.

Charging New York motor vehicles registration fees based on weight could generate more than $1 billion for the cash-strapped Metropolitan Transportation Authority, New York City Comptroller William C. Thompson Jr. said last week.

CHICAGO - The Illinois Supreme Court on Wednesday announced it would hear Provena Covenant Medical Center's appeal of a lower court opinion that stripped the Urbana hospital of its property tax exemption for failing to provide sufficient charity care.