Certain funds that the City was otherwise required to remit to the State (18 NYCRR 608.2) were withheld by the City on the ground that the State's negligent programing of its computers, and ensuing delay in fixing the problem after learning of it, caused the City to pay Medicaid benefits to a number of ineligible persons, costing the City millions of dollars. The State advised the City that such withholdings were improper and that, if the City did not remit the funds, the...
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