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Funding battle heats up
By The Mercury News
Published: 05/30/2008

CALIFORNIA - Hours after a federal receiver threatened to seize $3.5 billion to fund prison medical care, an act that would exacerbate the looming budget deficit, the state Senate moved toward a showdown by blocking a proposal Thursday to sell bonds to raise the money. Senate Republicans rejected the Democratic proposal to provide the funding despite a warning from J. Clark Kelso, the receiver in charge of improving shoddy medical care in state prisons, that the state must come up with $7 billion over three years.

Kelso could seek a court order to seize half the money, which he said he needed within the next year, from the general fund, even though the state faces a $15.2 billion deficit. Kelso has been given broad authority by U.S. District Judge Thelton Henderson to vastly improve medical care in the state's 33 prisons, a costly and lengthy effort to deal with a lawsuit filed by inmates in the severely overcrowded system. Read more.

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