NEW YORK NEEDS $3 BILLION
NEW YORK — Mayor David Dinkins said New York City needs Albany's approval to borrow $3 billion despite a state budget accord hammered out last weekend. The mayor has proposed amendments to the state Municipal Assistance Corporation Act and the Financial Emergency Act that would permit the city to ease budget restrictions.
Dinkins wants permission to sell $3 billion in notes to raise cash delayed by Albany because of the budget impasse.
Dinkins warned that while the note sale could hurt the city's and the state's credit standing, the state budget impasse leaves the city little choice. The note sale will cost the city some $20 million in interest on top of the $19 million the city already borrowed during the state budget delay.