Derec, you haven't bothered to look into the actual issues here, so I suggest that you read articles likes this:
How Detroit students made a federal case out of the city’s broken schools
Well, the OP only linked to DailyKos so I was going by that.
This seems another biased article, but much better argued than the Kos piece. Still tendentious though.
And why aren't they suing the district? The problems are based in the district, not state-wide. And as I have already shown, Detroit has pretty high funding per student. If that is not properly spent (and it seems not to be), then the problem is in the district, not governor's office.
I think the left wing law firm representing the plaintiffs is doing this for partisan political reasons, which is sad.