Regionalization also continued.
The state institution in Hastings was closed in 1976 and ownership of the Lake Owasso institution transferred to Ramsey County the same year. Both decisions were initiated to fund new activities required under Judge Larson's order.
Noting declining resident populations, the 1976 Comprehensive Plan for the state's Department of Public Welfare called for three additional state hospitals to close by 1980.
The long-range plan cited increased costs and the need to differentiate those who could live in the community from those who could never leave.
In 1978, the Residential Care Study predicted a 30 percent reduction in resident population in five years. It stated that the future should be based on individual need rather than social, economic, and political factors.
Those with the most complex needs informally became known as "the residual population."

In 1976, the state institution in Hastings was closed and its budget was used to fund Judge Larson's orders..
In 1976, the Legislature passed key legislation, including new zoning laws, bonding authorities for group homes and a family subsidy program. Responsibility for the Deaf, Braille, and Sight Saving schools also was transferred to the Department of Education effective in 1977.

Key legislation passed in 1976 created new zoning laws, a bonding authority for group homes and a family subsidy program.