Appeals Court to Hear Funding Challenge

SAN DIEGO -- The 9th Circuit Court of Appeals heard arguments Thursday in Pasadena in a lawsuit that has sweeping implications for the state budget and thousands of low-income, disabled Californians and their families.
The Developmental Services Network and other nonprofit associations filed suit to challenge a 2009 freeze in Medi-Cal funding that will harm California’s most vulnerable residents – the developmentally disabled with medical needs who live in intermediate care facilities.
A federal judge enjoined the State from implementing the freeze in May but a government appeal has permitted the State to ignore the judge's order and has forced treatment facilities in several California cities to consider closing their doors, advocates for the disabled indicate.