Governor Paterson Tells Legislators, 'No More Borrowing'

Monday, November 03, 2008

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.


More in:

Leave a Comment

Email addresses are required but never displayed.

Get the WNYC Morning Brief in your inbox.
We'll send you our top 5 stories every day, plus breaking news and weather.


Latest Newscast




WNYC is supported by the Charles H. Revson Foundation: Because a great city needs an informed and engaged public


Supported by