Calif. told to find $250 million for prison health

updated 9:00 p.m. ET Oct. 8, 2008

SACRAMENTO, Calif. - A federal judge on Wednesday ordered Gov. Arnold Schwarzenegger's administration to say whether California has the $250 million needed to start an $8 billion overhaul of the prison health care system.

U.S. District Judge Thelton Henderson said the administration must also say how and when the state will make the money available to a court-appointed receiver. He set an Oct. 27 hearing for the administration's response.

J. Clark Kelso, the receiver, wants the money immediately to design the first three of seven planned prison medical and mental health centers, which would house 10,000 inmates.

Kelso said he needed more than $3 billion this fiscal year, despite the state's mounting financial problems. State Controller John Chiang reported Tuesday that revenue for the first quarter of the state's fiscal year is down $1.1 billion from projections used in the budget Schwarzenegger recently signed.

The judge said Monday during a hearing in San Francisco that he expects the state to pay the entire cost, despite its fiscal difficulties. In a two-page order, Henderson said he sees the $250 million payment "as an intermediate step short of a contempt finding."

Kelso argued that Schwarzenegger and Chiang were in contempt of court for not turning over the $8 billion. Kelso had asked the judge to order the state to pay only the first $250 million.

"What we got here is a very clear acceptance of what we asked for," Kelso said of Henderson's order. "We are, frankly, taking that first step forward."

Henderson's order said the $250 million was appropriated 18 months ago as part of a $7.4 billion borrowing plan for other prison and jail construction projects.

But state Department of Finance spokesman H.D. Palmer said the administration included $50 million of the money in the current year's budget and had planned to make the remaining $200 million available in the next fiscal year, which begins July 1, 2009.

Spokesmen for the administration and attorney general's office, which is representing the state, said they are reviewing the order but likely won't respond until the hearing.

More from msnbc.com White House is sued over Obama visitor logs Cosmic Log: Light show sparks UFO buzz Field Notes: How Tiger Woods betrayed me, too Your body's big enemy? You are sitting on it Bin Laden remains elusive, frustrating U.S. Send us images of your salutes to troops, friends, kin Giving back for the holiday season? Tell us how

MORE FROM LIFE

Life Section Front

Calif. city gets Charlie Brown Christmas tree   Storm plea: Cut back on holiday lights WWII veteran had Hitler’s art book on shelf L.A. council delays pot-dispensary vote   Team predicts above-average hurricane season Quadriplegic N.J. hunter takes aim Cheating? Watch that e-trail ‘Napoleon’ returns to library after 60 years Ex-state Sen. Kasim Reed elected Atlanta mayor Life Section Front   Add Life headlines to your news reader: