When city officials estimated last week that Detroit was missing out on $1 million in state funds due to a late audit, they were way off.
The real amount the financially struggling city is missing out on is more than $24 million overall with $11.3 million of that figure withheld this month according to the Detroit Free Press.
The Department of Treasury is now withholding $24.5 million owed to the city because the required 2008-09 annual audit is eight months late. The state distributes revenue sharing on the last day of each even-numbered month.
That’s a substantial amount of money for Detroit right now, considering Mayor Dave Bing has been fighting to cut basic city services and worker pay just to scrape up what Free Press writer Suzette Hackney calls “piecemeal” savings.
Hackney writes:
The cuts seem almost piecemeal — $7 million here, $11 million there, another $10 million over here …
Bing released a statement saying that the audit for the 2008 fiscal year, which was due last fall when Ex-Mayor Kwame Kilpatrick was in office, will be submitted this October. The mayor, who was elected in May’s special election and is up for re-election in November, said future audits will be submitted on time.