The decision by the Court of Appeals last week upholding a scheme to refinance part of New York City’s debt provides further proof of the axiom coined by columnist Michael Kinsley: The scandal isn’t what’s illegal. The real outrage is what’s legal.

The refinancing plan delays until 2034 the repayment of a debt first run up 30 years ago, during the fiscal crisis of the 1970s — assuring that a generation yet unborn will pay for services consumed by their grandparents and great-grandparents. It spreads what is rightfully a city obligation to the entire state. And it more than doubles the overall cost for taxpayers, to $5.1 billion over 30 years rather than $2.5 billion over five.

Yet the state’s highest court finds that this comports with the letter, if not the spirit, of the constitution. Thus it looks as if the legislative leaders who approved the deal over Governor Pataki’s veto will get away with it.

Our plain-language reading of the state constitution persuaded us that the lawsuit against the deal — filed by Mr. Pataki with support from the state comptroller, Alan Hevesi — should have won the day. The constitution says the government may not incur long-term debt without seeking specific approval from the voters. This deal does not consult the voters, who would undoubtedly disapprove it if asked.

The constitution says the entity taking out a loan must pledge its “full faith and credit” — this is, it must promise to levy taxes as necessary to pay back its creditors. In this deal, neither the state nor the city makes such a commitment. Instead, a paper organization dubbed the Sales Tax Asset Receivable Corporation theoretically bears full responsibility. Indeed, the city’s lawyers argued, and the courts accepted, that the soon-to-be-issued STARC bonds cannot be considered debt because there was no “full faith and credit” pledge by either the state or the city — neatly turning the law on its head.

Indeed the intention to make an end run around the law becomes clear when one examines the Rube Goldberg structure of the deal: A state borrowing agency known as the Local Government Assistance Corporation will forward $170 million a year to the city of New York. The city will irrevocably assign its “right” to that money to the aforementioned STARC. And on the strength of that promise STARC will float $2.5 billion in bonds, which is enough to pay off the remainder of the city’s debt to the Municipal Assistance Corporation.

We hope that we are misreading the signs that Mr. Pataki is giving up his crusade. Even a long-shot appeal to the federal courts would be worth the effort and expense if it might save taxpayers $2.6 billion in pointless debt payments.