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STATE OF NEW YORK v. SHALALA

No. 97-6226.

143 F.3d 119 (1998)

STATE OF NEW YORK, New York State Department of Social Services, and the New York State Department of Health, Plaintiffs-Appellants, v. Donna E. SHALALA, as Secretary of the United States Department of Health and Human Services, Shirley S. Chater, as Commissioner of the United States Social Security Administration, Franklin D. Raines, as Director of the Office of Management and Budget, Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided June 4, 1998.

Attorney(s) appearing for the Case

Katharine Demgen, Asst. Atty. Gen., New York City (Dennis C. Vacco, Atty. Gen. of State of New York, John W. McConnell, Deputy Solicitor Gen., Robert A. Forte, Asst. Atty. Gen., New York City, on brief), New York City, for Plaintiffs-Appellants.

Jonathan A. Willens, Asst. U.S. Atty., New York City (Mary Jo White, U.S. Atty. for Southern District of New York, Gideon A. Schor, Asst. U.S. Atty., New York City, on brief), for Defendants-Appellees.

Before: OAKES, WALKER, and MAGILL, Circuit Judges.

PER CURIAM:

The Department of Health and Human Services ("HHS") denied federal reimbursement to the State of New York and two of its agencies for interest costs associated with the State's acquisition of computer equipment and publicly owned building space used by the State to administer several social service programs that are partly funded by the federal government. These disallowances were affirmed by HHS's Departmental Appeals Board, whose decisions were upheld...

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