The state was supposed to show by June 30 that it was in substantial compliance with the plan, but U. S. Magistrate Judge Kevin Chang said he could not conclude the state achieved that goal.

He said the state made progress in serving the seriously mentally ill residing in the community since the case first started 15 years ago. But he said he cannot ignore the state's "shortcomings" in areas critical for the plan to serve the mentally ill.

The "shortcomings" include areas covering forensic services and case management, he said.

Chang said the state must continue to implement the plan until Nov. 30 when the lawyers for the state and Justice Department agreed the federal oversight over the plan will end.

Chang recommended no further action be taken. He recommended that the case against the state be dismissed on Nov. 30.

Chang's 25-page report will be submitted to U. S. District Judge David Ezra. Chang asked Ezra to set a hearing to give the state and Justice Department attorneys a chance to respond to the report.

Chang recommended that if no objections are filed, Ezra approve the report.

The plan was developed with the participation of state health officials to serve the mentally ill outside of the state hospital.

It was part of a case started by a 1991 Justice Department lawsuit against the state alleging civil rights violations of patients at the hospital. The hospital emerged from federal oversight in late 2004, but Ezra retained oversight over the plan.

Chang has been reporting to Ezra the state's efforts in trying to comply with the plan.