Detroit will not receive the $10 million bailout after its city council rejected Tuesday a contract to hire a law firm that was part of the deal to help the city repair its finances. The state of Michigan and its biggest city, Detroit, announced the deal last week that included some milestones the city is required to do within a month to receive the $10 million by Tuesday and another $20 million on December 14.

The city council of Detroit rejected a contract for the law firm of Miller, Canfield, Paddock, & Stone via voice vote. The firm was to provide legal advice and handle litigation regarding the implementation of a financial stability deal made to overhaul Detroit’s finances.

The rejection meant that the city will not receive the $10 million scheduled for release today according to Mayor Dave Bing. He said that the rejection will make it more difficult for the city to maintain positive cash flow.

Detroit has struggled with its budget for many years as the city’s population decreased and the automotive industry has lessened. The industry once drove economic activity in the city. State officials criticized the city for its slow progress on financial reforms. It needs money to avoid running out of cash by the end of the current year. The city increased $137 million via a debt sale but it can only access the money if it meets the conditions of the deal.

Projections made by Detroit city officials showed the city’s weekly cash flow to be at $4.1 million in mid-December before it falls to a negative $4.8 million at the end of the year. The city created a financial advisory board under an agreement that allowed the city to avoid the appointment of an emergency manager to run the city. This also allow Detroit’s mayor to disregard the collective bargaining agreements with unions.

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