DETROIT

Detroit Stops Paying Some Vendors

12/13/2011 07:07 am ET

Running short on cash to fund basic services and payroll, Detroit stopped paying some of its vendors in a move that experts say could increase the likelihood of the state appointing an emergency manager or contractors pushing the city into bankruptcy court.

City Council President Pro Tem Gary Brown, the lone Detroit elected official calling for some state intervention, said the city must act more quickly to reduce a runaway deficit that could reach $340 million by June and force draconian reductions.

"In order to make payroll, the City of Detroit has been delaying payments to vendors and contractors," Brown told the Free Press on Monday. "We must repair our finances and transform this culture of overspending to one that supports responsible fiscal management and a thriving environment."

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