SACRAMENTO – Faced with a monumental budget deficit, state lawmakers appear poised to raid a $3.7 billion account used by cities and counties to pay for public safety, health programs and parks. Top Democrat budget writers have delivered an ultimatum to Republicans: either support tax hikes and a plan to borrow from schools or the state will be forced to take money from local governments. Republicans branded the threat "extortion." Cities and counties have become increasingly suspicious of lawmakers as the the state budget gap widens, reaching an unprecedented $23.6 billion. In the desperate search for revenue, $3.7 billion...
