LOS ANGELES - A group representing 188 California cities Wednesday condemned a proposed state budget as an "irresponsible Ponzi scheme" and threatened to sue the state if the legislature enacts it.

The League of California Cities presented its plan at a downtown news conference attended by several officials from the San Gabriel Valley. "This proposed budget is in fact nothing more than a smoke-and-mirror scam," said Duarte City Councilwoman Lois Gaston, who is also president of the California Contract Cities Association.

Gaston, Los Angeles County Supervisors Zev Yaroslavsky and Michael Antonovich, and Alhambra Police Chief Jim Hudson called the state's proposal to borrow millions of dollars from local agencies illegal.

Each urged state lawmakers to balance the budget "with their own money."

The budget proposal, which could be approved sometime today, calls for the seizure of $1.7 billion in redevelopment money from local agencies, as well as stripping millions of dollars in gas and property taxes from local coffers.

Gaston noted that her city is estimated to lose $3.2 million to the state. She called the budget proposal "a backroom, Enron-type deal." The lawsuit planned by the League and Los Angeles County attacks the fund seizures as unconstitutional.

"In an effort to balance the budget on paper, legislative leaders have undermined our ability... to provide local services to our cities," she said. Hudson, president of the Los Angeles County Police Chief's Association, warned that the state was forcing local agencies to make cuts to law enforcement that will jeopardize public safety.

"This budget, simply put, is a disaster," Hudson said. "I assure you many police departments will face further reductions in staffing." The news conference was attended by officials from nearly 30 cities, including Alhambra, Azusa, Baldwin Park, Covina, Duarte, Glendora, La Ca ada Flintridge, Monterey Park, Rosemead and Santa Fe Springs.

Many of them - 188 cities so far statewide - have passed resolutions supporting the League of California Cities should it file a lawsuit against the state.

Voters in Covina renewed their utility tax last month in order to keep services. But they have now been betrayed by the state, said Covina Councilwoman Peggy Delach.

"Everything they voted for would be taken away by the state," she said.

Covina is estimated to lose out on $2.5 million over the next two years if the current proposal passes.

"This could be cause for losing our parks and recreation department, and closing our library - just like that," Delach said.

Pasadena, which has been struggling for years to overcome a structural deficit, would be forced to make another $9.6 million in cuts in areas including capital improvement projects, redevelopment and affordable housing, said Councilwoman Jacque Robinson.

"This is not the answer," she said. "We need to ask the state Legislature to reconsider their plan."

Glendora's Police Department is down 11 officers due to budget cuts, said Councilman Doug Tessitor. The city would lose out on another $2.5 million if the budget passes in its current form.

"We're going to have a reduced police force baby-sitting parolees," Tessitor said, referring to reports that the proposed budget also calls for the early release of 27,000 inmates. "It's going to be a disaster."

"We've done everything in our ability to stay in the black," said Baldwin Park Councilwoman Monica Garcia, whose city would lose nearly $4 million to the state.

"I don't know what else we as a city government can do," Garcia said.