New York Gov. David Paterson is ruling out borrowing as state leaders try to close a $1.5 billion budget gap in the last five months of the fiscal year.
Paterson says he fears rating agencies would downgrade the state's credit standing if New York used loans to address the financial crisis.
New York state Comptroller Thomas DiNapoli says Paterson is right to rule out taking on such debt. He says the governor's opposition to borrowing will help maintain the state's credit rating.
In past fiscal crises, the Legislature has approved borrowing billions of dollars rather than making deep cuts in school aid and other spending.
State debt is now $52.5 billion.
Paterson wants $2 billion in spending cut during a special legislative session on Nov. 18.
