Somehow, Detroit always manages to find new forms of self-sabotage, even as it’s set to run out of funds before the end of the year. The state government has promised to send the city $30 million in installments over the next few months, but only if Detroit agrees to take steps to get its finances in order. But yesterday, the City Council voted against hiring a legal firm to assist with the city’s financial stability agreement.
Mayor David Bing has already condemned the decision, warning that it threatens to push the city toward bankruptcy. Reuters reports:
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.
Mayor Bing said the rejection of the contract will make it more difficult for Detroit to maintain positive cash flow.