State funding? Good, that opens them up to a federal lawsuit. Study the Milonas V. Provo Canyon School lawsuit that was filed in the late '80s, I believe.
Find a lawyer who will file a lawsuit on behalf of a couple of students (like Milonas and Rice). Deep pockets while not always the first concern, are nevertheless a top priority with lawyers considering taking on a case of this magnitude.
The legal and consitutional rights of children are nearly impossible to enforce in programs that do not accept state/federal funds, which is why civil lawsuits are almost always the only option.
Funding via Medicare/Medicaid, or IEP's also qualify the institution as being under "color of state law" and therefore, not supported entirely by private funding (meaning parents).
Good luck!