Public finance

NEBRASKA

Proposed changes in how Moody's Investors Service rates $6.5 billion in tax allocation bonds in California could mean upgrades for many Golden State redevelopment credits.

Congress needs to preserve the tax exemption of municipal bonds if it's serious about supporting infrastructure, National Governors Association vice president and Utah Gov. Gary Herbert said.

MBTA completes its funding for a $2.3 billion light rail project in Boston with a $996 million federal grant.

Illinois and Gov.-elect Bruce Rauner face a sea of red ink because shrinking income tax revenue will fail to keep pace with rising pension and health insurance costs, according to outgoing Gov. Pat Quinn's latest three-year budget forecast.

MICHIGAN

OHIO

States will seek ways in 2015 to enhance existing revenue streams or create new ones to fund critical transportation projects, Wells Fargo says.

Predictions by several municipal experts forecast a 2015 that runs the gamut from a flattening yield curve to increased issuance on the heels of a surprisingly strong year of performance in 2014.

An estimated $2.185 billion is expected for negotiated sale the week of Jan. 5, according to Ipreo LLC and The Bond Buyer, while competitive sales are expected to total $1.055 billion.

In a written ruling outlining his verbal affirmation of Detroit's bankruptcy exit plan, the federal bankruptcy judge overseeing the case warned that if Michigan does not act to assure that cities can pay their pensions, it may mean a repeat of the high-profile bankruptcy.

Missouri's proposed $2 billion upgrade of I-70 could be funded by tolling the 200-mile link between Kansas City and St. Louis.

NEBRASKA

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, fell two basis points to 4.29% in the week ended Dec. 31, from 4.31% in the previous week.

Lack of action on federal transportation funding means growth in states' use of public-private partnerships to build, fund, and operate large projects.

The Motor City paid $170 million in attorney and advisor fees during the largest municipal bankruptcy in the U.S.

NEW YORK

FLORIDA

Buena Vista, Va., will stop making payments on a golf course bond issue that its officials say has become an albatross around the small city's finances.

Short-term extensions of federal transportation spending are likely to continue through 2015 as lawmakers struggle with a gasoline tax that can't pay the bills.