Economy

WASHINGTON — A Fitch Ratings report released this month lengthens the shadow cast over transportation credits by the economic downturn. However, the agency predicted an eventual upturn for seaports.

Lower revenues have hit Washington’s largely gas-tax funded transportation budget, but they’ve been offset somewhat by lower construction bids and favorable capital markets, according to a report Tuesday from the chair of the state House Transportation Committee, Judy Clibborn, D-Mercer Island.

Health care financing veteran Anne S. Morse joined the growing public finance team at Janney Montgomery Scott LLC last week, it was announced Thursday.

The Port Authority of New York and New Jersey yesterday took a step toward cashless tolling at its six state border crossings. The agency approved the design and construction of a new $175 million toll collection system at its monthly board meeting.

The House and Senate are hurtling toward a deadline this weekend to extend the current surface transportation law, but bills pending in each chamber differ significantly in how funds would be allocated to the states.

CHICAGO — The financially struggling Clare at Water Tower, an upscale, high-rise senior-living development in downtown Chicago, has reached a preliminary restructuring agreement with a group of bondholders and its letter of credit bank that, if approved, would buy the facility more time to succeed.

BRADENTON, Fla. — A myriad of options, including the use of pension bonds, are being considered in Atlanta, where spending on retirement benefits has soared to 20% of the city’s $523 million annual operating budget and the unfunded liability is now $1.5 billion.

Beginning in 2011 Essex County, N.J., may need to repay bondholders on more than $2 million of outstanding debt, as the Garden State Cancer Center is in technical default on the loan.

CHICAGO — The Indianapolis Local Public Improvement Bond Bank today will price $466.6 million of debt, marking the second piece of financing for a new $754 million public safety hospital in downtown Indianapolis.

The Illinois Regional Transportation Authority last week warned that additional service cuts are looming if the state doesn’t soon make good on $250 million in aid payments owed to the agency.

New York’s Metropolitan Transportation Authority approved the sale next month of $500 million of dedicated tax fund bonds at its finance committee meeting yesterday. Pending approval by the full board tomorrow, most or all of the bonds will be marketed as taxable Build America Bonds.

New Jersey Gov. Chris Christie last week appointed Sen. Bill Baroni to serve as deputy executive director of the Port Authority of New York and New ­Jersey.

The Massachusetts Port Authority plans to issue $110 million of private-activity bonds before the end of 2010 to take advantage of the federal government’s temporary suspension of the alternate minimum tax for such deals.

CHICAGO — The Missouri Highways and Transportation Commission enters the market this week with $185 million of Garvee bonds to complete the financing of its Safe and Sound bridge program and to fund its share of a new span across the Mississippi River.

BRADENTON, Fla. — On the heels of an upgrade for its Garvees, Kentucky tomorrow plans to sell $90 million of the debt for work related to its share of the massive $4.1 billion Louisville-Southern Indiana Ohio River Bridges Project.

After two years of turmoil, the nonprofit health care sector might see some relief in 2010, Standard & Poor's said in a new outlook report.

New Jersey Acting Treasurer Andrew Eristoff Thursday told a Senate committee that the New Jersey Transportation Trust Fund Authority may refund bonds to help generate needed borrowing capacity in fiscal 2011.

The Washington Senate Tuesday approved a bill that sponsors say will allow the state to move forward with plans for a toll-financed replacement of the Highway 520 floating bridge over Lake Washington.

State and local transportation authorities in more than 40 states will receive a total of $1.5 billion in grant or loan subsidy funds to support 51 projects that range from port revitalization to toll roads and streetcars.

NJ Transit may increase fares on buses and trains as early as May to help absorb a $33 million funding cut from the state and help plug a projected fiscal 2011 deficit of nearly $300 million.