Orange County supervisors are working on a plan to haul the county out of bankruptcy by diverting nearly $150 million from transit agencies and cities.
The Board of Supervisors reviewed the plan drafted by consultants and on Tuesday told staff to draw up legislation to put the plan before the state Legislature, which reconvenes on Monday.Cities have condemned the plan as a raid on their coffers.
It calls for diversion of as much as $70 million from transit funds, as much as $22 million in sales taxes from cities and up to $55 million from special districts.
Another key feature calls for the issue of new debt in excess of $500 million, backed by motor vehicle licensing fees.
Orange County filed for bankruptcy Dec. 6, becoming the largest local government ever to seek protection from creditors.