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State fights health project order
By The Sacramento Bee
Published: 12/09/2008

CALIFORNIA - The opening volley was fired Monday in an appellate showdown between California and a court-appointed receiver for prison health care who wants billions of the state's dollars to build new facilities for physically and mentally ill inmates. A San Francisco federal judge overstepped his bounds in threatening sanctions against California's governor and controller if they don't cough up a $250 million down payment on an $8 billion construction project, Attorney General Jerry Brown told the 9th U S. Circuit Court of Appeals.

U.S. District Judge Thelton E. Henderson declared in an Oct. 27 order that if Gov. Arnold Schwarzenegger and Controller John Chiang do not transfer the funds to receiver J. Clark Kelso, they risk being held in contempt. But 11 days later, the appeals court granted the state's emergency motion to stay the order and asked for expedited briefs from both sides on whether Henderson exceeded his authority. Read more.

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