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Mon June 11, 2012
Bing: State Likely Will Withhold Revenue Sharing
Detroit Mayor Dave Bing told City Council that state revenue sharing likely will be withheld unless a lawsuit challenging Gov. Rick Snyder's consent agreement with the city is dropped.
Bing said Monday that city Corporation Counsel Krystal Crittendon needs to cease her action claiming the consent deal is invalid because Detroit is owed past revenue sharing. Snyder disputes that claim.
The consent agreement allowed Detroit to avoid a state-appointed emergency manager.
A judge will hear Crittendon's suit Wednesday. A Treasury official warned last week that more than $80 million in revenue sharing could be in jeopardy if the suit is not dropped early this week.
Crittendon has refused to drop the suit.
Council President Pro-Tem Gary Brown said there "would be chaos" Friday if the lawsuit goes forward.