PORTLAND (AP) – A ruling by the state’s highest court that lifts the former Augusta Mental Health Institute out of receivership was hailed by Gov. John Baldacci as a victory for the state.

But an advocate for the mentally ill characterized it Monday as “a mixed decision” in which the Supreme Judicial Court upheld some key elements of a September 2003 ruling that was sharply critical of the state.

The unanimous opinion Friday invalidated Superior Court Justice Nancy Mills’ order on receivership, thus placing the management of AMHI, now called Riverview Psychiatric Center, back in the hands of the executive branch.

The decision also vacated a finding of bad faith by the state and established a clear guideline for development of standards defining compliance with the landmark AMHI consent decree.

The 1990 consent decree resulted from a class action suit claiming that Maine had fallen short of its responsibility to provide adequate care for AMHI patients. Since then it has cast a shadow over the way the state provides services to the mentally ill.

“The attorney general’s office has worked diligently on this case for over 10 years with the highest degree of professionalism and integrity,” Baldacci said. “This decision recognizes that the state was right on the key legal points.”

Helen Bailey, an attorney with the Disability Rights Center in Augusta, said she was pleased that the court agreed that the state was not in compliance with the consent decree and must provide services to mentally ill adults regardless of whether they were party to the class action.

Bailey expressed disappointment about the decision regarding receivership, but said the position of the AMHI receiver, Elizabeth Jones, was, in any event, due to expire next month.

The court did not address the state’s claim that Mills violated the separation of powers clause in the state constitution by appointing a receiver. Instead, the justices concluded that she exceeded her discretion by not attempting less intrusive remedies such as a contempt finding.

The justices noted that after the trial court’s decision on the facts of the case, the Legislature enacted a substantial expansion of eligibility for the state Medicaid program and created the new Dirigo Health insurance program that includes benefits for those diagnosed with “psychotic disorders.”

“This significant expansion of resources available for treatment of illnesses generally, and mental illness in particular, cannot be ignored in evaluating the good faith and seriousness of the state of Maine’s commitment to provide and improve institutionalized and community-based treatment for individuals with mental illness,” the court said.