(DETROIT) -- The Michigan Treasurer's Office warned Thursday afternoon that the lawsuit going up against the consent agreement that grants the state significant oversight into Detroit's finances could result in the city's losing $80 million in Michigan aid, the Detroit Free Press reports.
Deputy State Treasurer Thomas Saxton said in a letter to Jack Martin, Detroit's new chief financial officer, that a lawsuit filed Friday by the city's top lawyer could jeopardize the state's ability to allocate $80 million to Detroit to repay bonds issued in March to keep the city's finances afloat, the paper says.
The lawsuit, filed by Krystal Crittendon, Detroit's corporation counsel, alleges that the consent agreement was "void and unenforceable" because the state owes Detroit $224 million in revenue sharing and other debts. Saxton's letter, however refutes those claims, and says that Michigan is not in default to Detroit on any level, according to the Free Press.
Copyright 2012 ABC News Radio