City of New York v. New York State Division of the Budget

OPINION OF THE COURT

Lorraine S. Miller, J.

Petitioner, the City of New York (the City), commences this *1030CPLR article 78 proceeding seeking payment of $8,050,681 withheld from it for its operation of adult shelters on the grounds that respondents’ failure to release this sum despite the City’s present compliance with agency regulations is arbitrary and capricious and in violation of Social Services Law § 153 and 18 NYCRR part 486.

FACTS

Pursuant to Social Services Law § 153, New York State (the State) pays 50% of the operating costs of adult shelters. (For a discussion of the history of State…