New York, NY —
As Governor Paterson and state leaders try to figure out how to close a $1.5 billion gap in the state budget, Paterson says they'll have to do it without borrowing.
Paterson says state government has to be managed like a household. He says he fears rating agencies will downgrade the state's credit standing if New York uses loans to address the financial crisis.
State Comptroller Thomas DiNapoli agrees. He says the governor's opposition to borrowing will help maintain the state's credit rating.
Paterson has called a special session of the legislature on Nov. 18th to seek $2 billion in cuts from the current budget. So far leaders of the Senate and Assembly haven't commented on the credit freeze.
In the past, the Legislature approved borrowing billions of dollars rather than making deep cuts in school aid and other spending.
According to the state constitution, Paterson will have to offer his own budget cuts in time for the special session.
For WNYC I'm Jenna Flanagan.