The state budget recently passed included an additional 1.25% cut to regional center vendors, retroactive to July 1, 2010.
There are now 12 plaintiff groups participating in a lawsuit against all regional centers and DDS, making this a broad based lawsuit representing most vendor types in the state. The suit addresses the retroactive cut - one which would be devastating to providers.
A second hearing is scheduled for November 23rd to make a decision. This is an extremely important case because NO PRECEDENT exists in CA for retroactive returns of money. This means there is nothing that says the state can or can't take money back after paying it. With a projected 6 years of additional deficits in CA AND the $25 billion coming up next year this could be a significant issue for years to come.
Stay tuned for updates.