Economy

WASHINGTON — The Senate yesterday voted 61 to 39 to approve a $26 billion measure that would extend but phase out increased federal Medicaid payments to states through June 30 and give $10 billion to local school districts to prevent layoffs.

ALAMEDA, Calif. — Officials in Beverly Hills, Calif., were concerned about the city’s growing liability for the future health care costs of its current employees.

Massachusetts hospitals and higher educational institutions could face higher borrowing costs in the future as the state plans to fold the Massachusetts Health and Educational Facilities Authority into the Massachusetts Development Finance Agency.

WASHINGTON — A new study released this week by the Government Accountability Office shows that nearly all states have gotten back at least as much money as they contributed to the federal highway trust fund — a revelation that contradicts some lawmakers’ claims that certain states are subsidizing others’ highway and bridge costs under the current system.

The Senate is poised to pass legislation that would extend and phase out enhanced federal Medicaid payments to states for six months through June 30, 2011, as well as provide $10 billion to local school districts to prevent an estimated 140,000 educators from being laid off.

CHICAGO — Moody’s Investors Service this week lowered Kimberly Area School District’s general obligation debt one notch to Aa3, making it the third district to suffer a downgrade after reneging on a moral obligation pledge to repay asset-backed notes issued by their non-pension retiree health care trusts.

CHICAGO — Fitch Ratings on Monday downgraded more than $220 million of general airport revenue bonds issued for Kansas City International Airport by one notch due to a decline in debt-service coverage ratios and increased exposure to non-airline related revenues.

CHICAGO — Branson Airport LLC dipped into reserves to cover its July 1 debt-service payment on $113 million of unrated tax-exempt bonds as it struggles to meet traffic projections for the privately built and operated Missouri facility.

CHICAGO — South Dakota’s Regional Health today will offer $57 million of fixed-rate revenue bonds that will be used to fund various capital projects and refund a chunk of fixed-rate debt to achieve savings.

Andrew Garvey, head of capital markets banking at Cain Brothers, has departed the boutique firm after nearly three years, the investment bank confirmed Tuesday.

Moody’s Investors Service Monday downgraded the Lakewood Hospital Association to A3 from A2, warning that it faces significant financial challenges going forward. Analysts kept the outlook negative at the lower rating.

DALLAS — After years of planning, Colorado’s Regional Transportation District is preparing to issue $404 million of tax-exempt private-activity bonds Wednesday to finance a 23-mile commuter line linking Denver International Airport to a new downtown transit hub at Union Station.

The New Jersey Transportation Trust Fund Authority plans to use an outside financial adviser to help craft a financing plan as it faces the prospect of running out of money for new capital projects by July 2011.

BRADENTON, Fla. — The Miami-Dade County Expressway Authority, after a four-year hiatus, is back in the bond market this week with $345 million of toll-revenue bonds.

WASHINGTON — Fitch Ratings downgraded the Weirton Medical Center in West Virginia on Friday after Moody’s Investors Service took similar action earlier this year. But credit analysts and hospital managers said Weirton has the cash to make its debt-service payments.

The Puerto Rico Public-Private Partnership Authority last week received eight responses from infrastructure investment firms looking to bid on a potential long-term lease agreement for the commonwealth’s busiest roadway.

Harris County Hospital District is planning to issue $104 million of senior-lien refunding bonds this week in variable-rate mode with a letter of credit from JPMorgan Chase. The tax-exempt bonds will retire Series 2007B auction-rate bonds that were converted to taxable debt in April 2008.

Pennsylvania and New Jersey are looking to a potential public-private partnership to help finance replacement of the 50-year old Scudder Falls Bridge, which connects the two states over the Delaware River.

Pennsylvania Gov. Edward Rendell and New Jersey Gov. Chris Christie last week called for budget and management audits of the Delaware River Port Authority, as the bi-state agency has come under scrutiny recently for certain management practices.

The Dormitory Authority of the State of New York created a finance committee last week to comply with a public authority reform law enacted last year. The committee will review all proposals for bond financings with DASNY staff before they are brought to the board for approval.