§ 89-g. Costs for establishing, operating and maintaining alternate
correctional facilities. 1. When the city of New York has entered into
the agreements as set forth in section eighty-eight of this article, it
shall be obligated, to pay, in accordance with such agreements and at
such times and in such amounts as may be determined by the commissioner
and approved by the director of the budget, all direct and indirect
costs associated with the acquisition, construction, establishment,
capital repairs and improvements, operation and maintenance of the
alternate correctional facility.

2. Upon completion of the acquisition, construction and establishment
of an alternate correctional facility, the commissioner shall make a
final determination of the cost of such project and shall certify such
cost to the comptroller and to the city of New York. Notwithstanding any
other provision of law to the contrary, upon receipt of such
certification of the commissioner, the comptroller shall forthwith
refund any amounts received from the city of New York in excess of the
costs so certified to the city of New York, including interest accrued
thereon.

3. On or before October fifteenth of each year, the comptroller shall
certify to the commissioner the actual operation and maintenance costs
of each alternate correctional facility for the preceding state fiscal
year and the amounts paid by the city of New York for such operation and
maintenance costs. To the extent that the amounts so paid by the city of
New York are less than the operation and maintenance costs for such
state fiscal year, the commissioner shall include the amount of such
underpayment in the next payment required to be received from the city
of New York, or if operation by the state has terminated, the
commissioner shall bill the city of New York for the amounts due and
such amounts shall be paid by the city within thirty days of receipt of
such a bill. To the extent that the amounts so paid by the city of New
York are more than the operation and maintenance costs for such state
fiscal year, the commissioner shall reduce the next scheduled payment to
be received from the city of New York by the amount of the overpayment
or if operation by the state has terminated, the commissioner shall
refund the overpayment within sixty days of the determination of
overpayment.