Detroit To Run Out Of Money -- Again

Looks like the State of Michigan isn't going to pander to Detroit.

The Detroit Free Press: State to Detroit: You'll lose $80 million or more if consent deal lawsuit isn't dropped

The state Treasurer's Office warned the City of Detroit on Thursday that it could lose $80 million or more in state revenue sharing unless Mayor Dave Bing gets a lawsuit dropped by next week that challenges the city's financial stability agreement with the state.

Deputy Treasurer Thomas Saxton told the city that the lawsuit against the consent agreement could force the state to hold back from the city $80 million in revenue sharing that was used, essentially, as collateral for interim refinancing of bonds issued in March so Detroit would not run out of cash.

In other words, the state will not bailout the City unconditionally, nor allow its funds to be used for a frivolous lawsuit against it by its Detroit opponents.

Good on the State for standing up to the Detroit Clowncil and others trying to game the system and keep the Statte's money without any need to be responsible and uphold the deal that got them the money in the first place.

Even The Freep columnists are realizing the Detroit has overstepped in its attempted gaming of the deal:

Stephen Henderson: Detroit faces a choice between acceptance of reality and suicidal defiance

Swallow your pride -- or choke on it.

That's what Detroit is down to in its operatic arc of financial tragedy: a final choice between acceptance of reality and suicidal defiance.

The city's elected officials can let their rogue corporation counsel, Krystal Crittendon, force payless paydays or worse with her quixotically loopy attempt to undo the consent agreement with the state to better manage Detroit's finances.

Or they can act like grown-ups and accept, with just a modicum of humility, that it is their responsibility to determine Detroit's fate, not Crittendon's. They can order her to stand down, so that other agreements between the city and state (including one worth an immediate $80 million to the city) can go forward.

You'd think there would be no question about the right choice.

But this is Detroit.

So will Detroit do the right thing, or instead in following their present course decide that this situation absolutely requires a really futile and stupid gesture be done on somebody's part?

The Detroit City Council: "And we're just the guys to do it!"

Stay tuned, and have the popcorn ready.