NYC-WTC_000195490

NYC 9/11 Public Portal Document

JUDGMENTS AND CLAIMS The Executive Budget for 2002 provides an appropriation of $310 million for Judgments and Claims. These expenditures represent the City’s costs for tort and contract liability and are projected to reach $369 million by 2005. Tort expenditures cover both personal injury and property damage claims, and account for approximately Increase/ 96 percent of total costs, It should be noted that these projections incorporate the impact of a recent agreement decrease) between the City and the Health and Hospitals Corporation, whereby, commencing in 2002, claims costs attributed 10,020 to the Corporation will be entirely paid for by the Corporation. These amounts, as reduced from the City’s annual 67,609 liability, are estimated at $154 million in 2002, and reaching $167 million by 2005. 8,837 493 The Office of Management and Budget (0MB) employs various statistical methods and financial models to 8,798 estimate anhual claim costs. Historical claim data contained on the Comptroller’s Omnibus Automated Image 3,059 Storage and Information System (OAISIS) are analyzed to determine both annual settlement volumes and average !98,816 claim costs. Total costs are the product of both the volume and average cost projections.

In addition^ 0MB consults the Law Department to provide cost estimates for cases that are expected to settle [00,111 for $ 1 million or greater. These are mainly serious personal injury cases that have been in litigation or on appeal for a considerable period of time. These cases represent almost 20 percent of total tort costs, but their relatively (1,000) small volumes do not lend themselves to statistical analysis.

705 (1,000) ;98,816

(

i

I 231 f

NYC-WTC_000195727