BOARD OF TR. OF PUB. EMP. RET. FUND v. SULLIVAN

No. 90-3010.

936 F.2d 988 (1991)

BOARD OF TRUSTEES OF the PUBLIC EMPLOYEES' RETIREMENT FUND OF the STATE OF INDIANA, Plaintiff-Appellant, v. Louis W. SULLIVAN, Secretary of Health and Human Services, and United States of America, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided July 15, 1991.


Attorney(s) appearing for the Case

Michael Schaefer, Deputy Atty. Gen., Federal Litigation, Indianapolis, Ind., for plaintiff-appellant.

Thomas E. Kieper, Asst. U.S. Atty., Indianapolis, Ind., Edward L. Koven, Dept. of Health and Human Services, Region V, Office of General Counsel, Chicago, Ill., for defendants-appellees.

Before EASTERBROOK, MANION and KANNE, Circuit Judges.


EASTERBROOK, Circuit Judge.

When the federal government pays its share of the costs of a cooperative state-federal program, it underwrites part of the fringe benefits of the employees who carry out the program on behalf of the state. It is difficult, however, to define the proper share of the federal government. States are tempted to set up accounting systems that shift a disproportional share of the total costs of their employees to the federal

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