In late February, cash-strapped Detroit received a $1 million check from the local school system that wasn't deposited. The routine payment wound up in a city hall desk drawer, where it was found a month later. This is the way Detroit did business as it slid toward bankruptcy, which it entered July 18. The move exposed $18 billion of long-term obligations in a city plagued by unreliable buses, broken street lights and long waits for police and ambulances. Bankruptcy may pay for better services by reducing Detroit's daily costs as much as 40 percent, said John Mogk, a law professor specializing in urban policy at Wayne State University. "You're talking about $300 million or $400 million that would not go toward past obligations, but could be put into new investments or services for the city," Mogk said. "It opens up new opportunities for the city to try to improve living conditions in the city and try to stimulate economic growth."

http://www.bloomberg.com/news/2013-08-09/detroit-losing-1-million-check-bares-hobbling-processes.html
http://www.crainsdetroit.com/article/20130809/NEWS01/130809870/detroit-losing-1-million-school-check-more-proof-of-inefficiencies#