Will Detroit run out of cash? (Reuters / CS Monitor)

November 20, 2012 – Detroit will not get a much-needed $10 million after the city council rejected on Tuesday a contract to hire a law firm that was part of a deal to keep the city on track to overhaul its finances. The state of Michigan and its biggest city, Detroit, announced a deal last week that includes several milestones the city must achieve in the next month to receive the $10 million by Tuesday and another $20 million by Dec. 14. The setback leaves the city at risk of running out of cash by the end of December if it does not meet those goals. In a voice vote, the city council rejected a contract for the law firm of Miller, Canfield, Paddock & Stoneto provide legal advice and to handle litigation related to implementing a financial stability agreement designed to fix city finances. The rejection “means the city will not receive the first $10 million scheduled for release today,” said Mayor Dave Bing in a statement issued right after the vote.

Link to Full Article: http://www.csmonitor.com/USA/Latest-News-Wires/2012/1120/Will-Detroit-run-out-of-cash

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