Will Detroit run out of cash this week? Council shrugs.

By Steve Neavling

If anything is certain in Detroit, politics are frustratingly childish and counterproductive.

And Detroit City Council didn’t disappoint today.

Despite threats from Mayor Dave Bing and his staff that the city is about to run out of money to pay for basic services by week’s end, council pounced on the chance to embarrass the administration rather than reach consensus on how to handle the cash shortfall.

The problem stems from a suit filed by the city’s top attorney that alleges a consent agreement between the state and city violates municipal law and should therefore be voided.

The state pledged to scrap plans to lend Detroit about $137 million to make it through the end of the fiscal year this month if the suit isn’t dropped.

“Once we run out of money, we can’t run this city,” Bing told council. “That’s the danger we face. I don’t want to play this game of roulette.”

The council, however, appeared poised to play the odds and call the state’s bluff – at the risk of losing services.

“It amounts to bullying,” Councilwoman JoAnn Watson said of the state’s threat to pull funding unless a suit is filed. “It sounds like extortion, and the state should not be in the business of treating cities this way. It’s outrageous.”

Watson, who was among four of nine council members to vote against the consent agreement, called on colleagues to support the top attorney’s lawsuit.

Councilman Kwame Kenyatta agreed.

“We should tell the governor to stand down,” Kenyatta said to applause from the crowd squeezed into the small council room. “I support the corporation council. How can you demand someone doesn’t follow the law?”

Bing said he worries the lawsuit could drag on until the city is without money to pay for police, garbage pickup and health officials.

“This is a timing issue from a cash standpoint,” Bing said. “Without cash, we are dead.”

Steve Neavling

Steve Neavling lives and works in Detroit as an investigative journalist. His stories have uncovered corruption, led to arrests and reforms and prompted FBI investigations.

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