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Attorneys for opposing sides in a lawsuit challenging the county’s cuts in mental health services presented oral arguments in the case Tuesday. After a two-hour hearing, Superior Court Judge Robert E. May said he will release his written decision on the matter Jan. 27.

In August, the Legal Aid Society of San Diego sued the county, seeking to block $3.2 million in cuts in the mental health budget. Legal Aid argues that, in making the cuts, the county is failing to meet levels of care mandated under California law.

The society predicted that the cuts would limit the county’s mental health clinics--a last resort for residents who cannot afford private care--to providing only short-term crisis care, not the continuing care that those with chronic mental problems need.

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County officials claim that, even with the cuts, the $56-million mental health budget for fiscal year 1988-89 will enable it to meet its state-mandated responsibilities. They also claim that the county has discretion in determining certain levels of mental health service.

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