Adding more angst to easily the worst budget situation in California history, officials confirm that the federal court appointed prison receivership has spent almost $500 million more than budgeted in the fiscal year that ends on June 30.
The cost overruns in the operation overseen by receiver Clark Kelso have been the subject of Capitol rumor for months. But the high price tag was only confirmed over the last 24 hours, first by comments made during a budget conference committe hearing on Tuesday and later by Kelso himself.
The federal judge who took control of California prison health care some three years ago rejected a request today to scrap the court-appointed receivership.
U.S. District Judge Thelton Henderson denied a petition from Governor Schwarzenegger and Attorney General Jerry Brown to replace the receivership with the more limited powers of a special master.