Detroit- The state today warned Detroit that it will withhold state revenue-sharing payments to the city unless a lawsuit challenging the consent agreement is dropped.

The money would instead be diverted to repay $80 million in interim bond financing that the state provided Detroit under the agreement, state officials said in a letter to the city today.

"The failure to withdraw this suit will have a cascading effect for the city," deputy State Treasurer Thomas F. Saxton wrote to Detroit's new chief financial officer, Jack Martin.

From The Detroit News: http://www.detroitnews.com/article/2...#ixzz1xC0N2Xyi