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State withholding payment to Detroit because of late report

By Rick Pluta, Michigan Public Radio Network


LANSING, MI – The state is once again refusing to send its monthly revenue sharing payment to Detroit. The cash-strapped city is late filing a legally required audit of its books with the Michigan Treasury.

The state Treasury is now sitting on $24.6 million dollars in payments to the city. The August payment alone would have been more than $11 million. The city is eight months late filing the audit, dating back to the administration of Mayor Kwame Kilpatrick.

Since then, the financial woes facing Michigan's largest city have continued to pile on. Detroit has a budget deficit of at least $300 million, and Detroit Mayor Dave Bing warns the city is rapidly burning through all the money it has in the bank. At the same time, the new mayor is trying to negotiate layoffs and salary reductions with city workers.

The state is cutting Detroit a check for $36 million to make sure it does not default on payments to lenders.

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