City of New York v. New York State Department of Environmental Conservation

OPINION OF THE COURT

Irving Lang, J.

The central issue in this CPLR article 78 proceeding is whether the Department of Environmental Protection (DEP) of the City of New York is entitled to State reimbursement for certain costs incurred by other agencies. These costs were incurred by 13 “central support agencies” which, under the city’s “Cost Allocation Plan” (CAP) distributes overhead costs to other city agencies including DEP. Relying on a decision which allowed allocation of “fringe benefits”, the city claims that its CAP costs are analogous, and that the action of the State in rejecting…