Paterson Explains Why There's No Borrowing in State Budget
Thursday, August 05, 2010 - 09:46 AM
"There is no borrowing in this budget."
That's what Governor Paterson said this morning during a radio interview on WOR, which is a notion that was quickly challenged by the show's host since the state's budget includes a financial maneuver many (even Ira Glass) have criticized as borrowing.
Radio host John Gambling said the state is going to "take monies from the pension, are you not? It will be a liability down the road. Isn't that a form of borrowing?"
"No, that was kind of a semantic situation," Paterson said. "What we did was refinance it, divide it over a number of years. No student of government or budget analyst would ever call that borrowing. Because in borrowing, you're getting something. Here, it's just taking a debt and apportioning it out over a number of years."
"Borrowing," Paterson explained, "is when you take an amount of money and put it in the budget and then you have to pay the interest on it and delay it over a period of time."