Detroit submitted its long-delayed 2006-2007 audit to Michigan authorities last week in a move that is expected to prompt the state to release $42 million in withheld revenue-sharing aid.
But now the city is two months behind in submitting its 2007-2008 audit, and that likely means the state will withhold $34 million in aid until the audit is finished.
Detroit officials turned in the audit last Thursday, fulfilling a promise by interim Mayor Ken Cockrel Jr. that the city would submit the 14-month-overdue document by the end of February. The city’s chronically late audits have been repeatedly cited as a concern by credit analysts and by state treasury officials, who have withheld several revenue aid payments over the last year.
The 2006-2007 audit shows the city faces a $156 million deficit, according to local reports. Detroit officials have said the current deficit is closer to $300 million.
