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Judge May Seize $8B From Calif. Treasury

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Aug 13, 2008 10:26 am US/Pacific

Judge May Seize $8B From Calif. Treasury

Federal Receiver Asks For Schwarzenegger, Chiang To Be Held In Contempt Of Court

SACRAMENTO (AP) ― The federal receiver in charge of California's inmate health care system is asking a judge to seize $8 billion from the state's treasury over the next five years.

Court-appointed receiver Clark Kelso on Wednesday said he needs the money to build new medical units for 10,000 sick or mentally ill inmates.
 
Kelso also asked the judge to hold Gov. Arnold Schwarzenegger and state Controller John Chiang in contempt of court for refusing to give him the money.

Wednesday's request to U.S. District Judge Thelton Henderson in San Francisco comes as lawmakers are at odds over how to cope with California's $15.2 billion deficit.

Kelso acted after the state Senate failed twice to pass a borrowing plan to spread out the cost of building the medical facilities.

He wants $6 billion for new prison health care facilities and $2 billion for improving existing ones.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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