Oh, that is horrible! They wouldn't treat their retired officers this way. Perhaps if they don't want to pay for medical services, they dogs should start racking up a pention so they can get some kind of retirement benefits.
That is just wrong to take away benefits for service dogs. They do their job with all their heart, and when they are retired, they should be taken care of accordingly. Perhaps the cataract surgery was a bit much for that one dog, but maybe they should need to have a signature or permission to have surgery over a certain amount.
I hope this gets resolved soon, and that it benefits the service dogs' futures.