Economy

North Carolina Gov. Beverley Perdue Tuesday released a budget proposal for fiscal 2011 that includes no additional bond issuance, but creates a new fund for transportation projects. The plan, which would amend the state’s biennial budget passed last year, closes a $1.2 billion budget gap.

DALLAS — Without a sales tax increase, the Denver area’s FasTracks transit system — originally designed as a 12-year project — would not be completed until 2042, according to the Regional Transportation District.

The Pennsylvania Department of Transportation yesterday released a plan that provides a framework for potential rail development during the next 25 years.

Michigan would see a relatively minor impact on its fiscal position as a result of the new federal health care law, according to an analysis by the Legislature’s Senate Fiscal Agency.

CHICAGO — St. Louis-based SSM Health Care System took retail orders yesterday on $280 million of fixed-rate bonds that will be open to institutional investors today. The deal will be followed early next month with $300 million of floating-rate debt.

Moody’s Investors Service last week upgraded its rating to A3 from Baa1 on Capital Region Medical Center. The upgrade affects $36 million of outstanding debt issued through the Missouri State Health and Educational Facilities Authority.

Standard & Poor’s last week revised the outlook on Nevada Regional Medical Center’s BBB-minus rating to negative. The action affects $21.7 million of debt.

Clarian Health Partners Inc. could spend up to $500 million to build a new patient tower at its Methodist Hospital site in downtown Indianapolis. Financing would include a mix of donations, cash, and tax-exempt bonds.

Illinois Gov. Pat Quinn last week announced a $12.8 billion highway improvement program for fiscal 2011 through 2016 that’s projected to create 167,000 jobs.

WASHINGTON — Real estate investment trusts could be the next frontier for infrastructure financing, according to a report released yesterday by Deloitte LLP, a member of Deloitte Touche Tohmatsu, a Swiss association. But legislation is needed to clarify questions of eligibility if public-sector entities want to secure REIT investments, the report said.

The director of the Oklahoma Department of Transportation told highway commissioners last week that any more cuts in state funding could halt a planned sale of $150 million of bonds.

The North Little Rock City Council last week unanimously approved a proposal by Mayor Patrick Hays to issue $7 million of five-year sales tax bonds that will provide $750,000 for a pedestrian and bicycle bridge over the Arkansas River.

The Blue Ribbon Committee on Highway Finance will hold four meetings across Arkansas in May to get public input on its proposals for financing state and local highway and street projects.

Jay Walder, chairman and chief executive officer of New York’s Metropolitan Transportation Authority, last week urged the municipal finance community to continue to support capital funding for mass-transit projects despite the economic downturn.

The Metropolitan Washington Airports Authority has appointed E. Lynn Hampton interim president and chief executive officer effective May 9.

CHICAGO — A merger between United Airlines and US Airways would hit the smaller hub airports where the two operate hardest as the carriers would likely move to consolidate those bases, Moody’s Investors Service warned in a new report on the potential credit impact of a union between the two.

The new federal health care law will likely mean less revenue for nonprofit hospitals in the long run, Moody’s Investors Service warned in a report out this week.

WASHINGTON — Infrastructure in the U.S., especially for water systems and surface transportation, is desperately in need of investment, the Urban Land Institute and Ernst & Young declared this week. Their report criticized governments from the local to federal levels for their sluggish movement toward transportation and infrastructure financing reform.

Governors Chris Gregoire of Washington and Ted Kulongoski of Oregon this week appointed an eight-member panel of experts to review plans to build a new bridge across the Columbia River.

Fitch Ratings is considering slashing its rating on Beebe Medical Center in Lewes, Del., after a former staff pediatrician at the hospital was indicted on charges of rape and sexual exploitation.