Just looked at it a few minutes ago and saw that it was fixed. Contacted our administrator and she downloaded the new updates last night.  I guess they saw the light and determined that they were not optimizing the deductions on the state returns.

Big shout out to everyone for responding to this issue that helped get it fixed because as I mentioned before, I spent 2 1/2 hours on the phone yesterday and was told to post to the community board to see if they could do an enhancement to fix this issue because they were certain that their program was doing this properly. 

Cheers!