* Hospitals find it tough to borrow

Carle Foundation Hospital in Urbana has delayed beginning construction of its $236 million expansion project for at least six months.

Hunt says for all practical purposes, there is no bond market for hospitals. He says until the market opens up again, expansion won’t start because the institution wants to borrow money at a favorable rate

* Feds OK $775 million a year to Ill. for Medicaid

The federal government has approved sending more than $775 million a year over the next five years to Illinois hospitals and other medical providers to help care for Medicaid patients.

Gov. Rod Blagojevich announced Thursday that the federal Centers for Medicare and Medicaid Services approved the five-year deal with the state.

As a result, the Illinois Department of Healthcare and Family Services will distribute more than $1.5 billion a year in Medicaid payments. Half of the money will come from the federal government and half from the state.

* State move spurs Aurora to cut 6 empty jobs

Six vacant city jobs will be eliminated as part of the effort to offset Gov. Blagojevich’s plan to pull back state-shared money.

Faced with possibly $2 million less in state income tax dollars, Aurora finance officials in the late stages of setting the 2009 budget scurried to absorb the reduction.

* Budget chief who installed shower in office washes out

Mayor Daley’s $163,656-a-year budget director abruptly resigned Thursday, leaving a giant void as Chicago struggles to survive its worst financial crisis in recent history.

“Look at the history of budget directors. It’s two budget seasons and out. That’s just the way it goes. It’s a tough and demanding job. I’ve done a lot to try and help the city, but it’s time to move on. It is truly and absolutely for my own personal reasons,” said Bennett Johnson III.

* It’s official: Chicago parking meters will be private, pricier

City Hall could spend more than half of its $1.2 billion check within a few years, but a private company that agreed to pay that huge sum to lease Chicago’s parking meters now will get to collect the cash for the next 75 years.

Although the 36,000 meters generate almost $20 million a year in net income—and rates are set to rise sharply next month—Mayor Richard Daley contends the city is better served in these tough economic times by taking the money upfront.

Under a deal approved Thursday by a 40-5 City Council vote, the cost to park at two-thirds of the meters in Chicago will quadruple next month. Neighborhood spots that cost a quarter an hour will cost $1 an hour and will increase to $2 an hour by 2013. The top meter rates in the Loop will go from $3 an hour to $6.50 within five years.

* Aldermen Support Parking Meter Deal Despite Reservations

* City shouldn’t plow its way into a fiscal fiasco

* New O’Hare runway seeing tons of traffic, and nearby residents not keeping quiet

* Mayor calls Pontiac Prison task force a sham

* Run for Rahm’s seat: Cary Capparelli files papers for 5th House bid.

* Illinois sees slight decline in school enrollment

The net decline of 3,689 students last year was less than 1 percent of Illinois’ nearly 2.1 million public school students, according to the state school report card released this fall. What’s more significant is that the decline was widespread. Enrollment dropped in 63 of the state’s 102 counties last year, according to a Tribune analysis. The state education agency is monitoring the shifting population, a spokesman said.

Cook County drove the decline, with a drop of more than 25,000 students from 2003 to 2008, Tribune research shows.

The Chicago Public Schools lost more than 45,000 students in the last five years, according to the state report card, and a city school spokeswoman said they’ve seen no “significant reversal of the downward trend.”

* SJ-R Opinion: Giannoulias pension plan deserves study

* A chance for Illinois pensions

Bureaucratic wagons are circling against Illinois State Treasurer Alexi Giannoulias’ clear-headed approach to the state’s public employee pension mess.

Illinois has five separate pension funds managed by three separate boards. Together, they have 300 employees.

Giannoulias proposes merging administration of these funds to cut overhead and reduce the impact of political influence and corruption.

Already, some of the employee groups are reacting predictably with complaints that can be summarized thusly: Leave us alone. We can get along fine by ourselves.

But they aren’t by themselves. Several analyses rank Illinois’ unfunded pension obligations as the worst in the nation. Unfunded pension debt — the amount expected to be owed to future retirees versus the money expected to be paid in — exceeds $43 billion. So, taxpayers have to kick in to help cover the $1,900 to $3,100 per month in retirement payments guaranteed to about 270,000 retired teachers, judges, legislators and other public employees.