On Thursday New Jersey’s Assembly approved $5 billion in borrowing to tide spending over until a federal care package arrives. In April Democrats in New York enacted a $177 billion budget that increased spending by $2 billion and authorized $11 billion in borrowing, though Gov. Andrew Cuomo thinks this budget trick is too risky for New York City Mayor Bill de Blasio to try at home.
Mr. de Blasio last week asked Albany to let him borrow $7 billion, though the Citizens Budget Commission raised concerns. “Borrowing for operating expenses is a risky proposition and needs to be done with caution, if at all, because now you are really rolling the dice on future revenues,” replied Mr. Cuomo.
Democrats think the dice are loaded in their favor. President Trump seems inclined to agree to a state rescue, perhaps in exchange for Covid-19 liability protection for businesses as they reopen, or as he said Friday a temporary payroll tax cut. If Joe Biden wins with anti-Trump coattails that give Democrats a Senate majority, blue states will be rolling in dough. The losers will be taxpayers in other states that aren’t run by public unions.