NATION IN BRIEF : NEW YORK : Dinkins Warns of Costly New Debt

Mayor David N. Dinkins said that New York City must borrow another $3 billion to keep functioning if the state fails to adopt a budget today so it can provide aid to the city. Dinkins said such borrowing would cost the city an additional $20 million in interest. The budget stalemate in Albany, the state capital, has already cost the city $19 million in interest. New York City faces a $3.5-billion budget gap in its worst fiscal crisis since 1974, when it barely avoided bankruptcy. Early this month, Dinkins and City Comptroller Elizabeth Holtzman raised the specter of payless paydays and defaults on city borrowing if the state were to miss the deadline today.