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A big move by Paterson, though to what end? The budget simply doesn't exist at this point, and Albany politicians aren't moving with any sense of urgency. And Ravitch makes a very interesting point; politicians will find a way to borrow even if they decide to call it something else.

On Wednesday, Mr. Paterson dealt a potentially fatal blow to the centerpiece of his lieutenant governor's tenure by declaring that he would accept no borrowing to help resolve the state's budget crisis. Borrowing was at the heart of Mr. Ravitch's financial rescue plan.

The governor's move, announced at a public meeting of state leaders in the Capitol, underscored the growing tension between Mr. Ravitch and the rest of the Paterson administration, who are fundamentally divided over how to close the state's $9.2 billion deficit.

Mr. Ravitch has argued that any budget that is ultimately passed will inevitably include borrowing, whether it is labeled so or not. That being the case, he has said taxpayers should get something in return. So he proposed borrowing up to $6 billion over the next three years in exchange for a series of budget reforms, including the creation of a financial review board and tough new accounting standards.