State budget called 'Ponzi' scheme

The state budget deal set for a vote today was decried Wednesday by local officials who characterized it as a money grab and a "Ponzi scheme" that will cause irreparable harm to public safety and services.Troy Anderson in the Daily News.

Officials have already threatened to file suit if the Legislature approves the agreement, which closes a $26 billion budget deficit by slashing health and welfare cuts, borrowing from local property tax revenues and diverting gas tax and redevelopment revenue from local governments.

But they continued to voice their outrage over the plan, tentatively reached Monday night after marathon negotiating sessions in Sacramento.