LOWER PAXTON -- Democratic state Senate candidate Judy Hirsh said Thursday that she will sue the state Republican Party and Sen. Jeff Piccola (R-Dauphin County) for libel if they do not immediately remove their latest TV ad and apologize for what she calls its inaccuracies.

The ad, airing on local TV stations, accuses the "wealthy" Hirsh of not repaying a nearly $200,000 loan until a court ordered her to do so. The accusation is an outright lie, Hirsh said at a press conference outsider her campaign office.

She and the state Democratic Party have asked the TV stations to remove the ad. They have replied they won't.

Josh Wilson, Piccola's campaign manager, said the ads were funded entirely by the Republican Party. He declined to comment, saying the senator had nothing to do with them.

Calls from the state Republican Party were not immediately returned.

The battle between the incumbent Piccola and Hirsh in the 15th Senatorial District has turned particularly nasty in recent weeks. The two candidates sparred over campaign tactics at their debate earlier this month and local airwaves have been flooded with several different TV ads chock-full of accusations.

But Democrats say the negativity has a silver lining -- it proves the GOP knows Piccola might be in trouble.

"Folks, Republicans don't do this on a whim," said Abe Amoros, political and communications director of the state Democratic Party. "They know they're in trouble. Jeff Piccola knows he's in trouble."

Amoros' presence at the press conference comes a day after state party Chairman T.J. Rooney issued a press release slamming the Piccola ad. Earlier this month, Gov. Ed Rendell appeared at a press conference with Hirsh to endorse her and criticize the senator for not passing his health care legislation.

Their involvement isn't surprising -- Democrats say this race is one of their few opportunities this year to reduce Republicans' 29-21 Senate advantage.

Hirsh said before this campaign, she thought Piccola was a "honorable" man. Piccola's earlier attacks convinced her otherwise, she said, but this latest ad "crossed the line."

"Senator Piccola and the Republican Party, the insiders funding his campaign, have really gone too far this time," she said.

"This is a final warning, if you do not pull the ad off the airwaves, I will take legal action against the Republican Party," the Democrat said.

Hirsh added she and her attorney will discuss legal action after Nov. 4 regardless of what happens between now and Election Day.

The Democrat also returned fire on Piccola, pointing to a Thursday Patriot-News article that said the senator spoke out against an amendment that would have strengthened an anti-takeover bill.