New Hampshire’s Supreme Court has ordered the state to pay $3.55-million to seven family-service charities, resolving a seven-year dispute over billing for residential child care, reports The Union Leader.

The court ruled last week that the state Division for Children, Youth, and Families ignored contractual obligations to cover rate increases for housing delinquent, abused, and other needy children in fiscal years 2004 through 2006.

Lisa Snow Wade, a lawyer for the nonprofit groups, said they are seeking similar repayment for 2007 through 2010 in separate proceedings.

Ms. Wade said that from 2004 state law required that care rates reflect “the reasonable actual costs of providing the services.” A lawyer for the state said it did not shift funds to cover the increases because New Hampshire legislators did not approve money to cover the rate hikes.

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