On The Money: Grilling At The Capitol

By Mike Luery

SACRAMENTO (CBS13) -- Lawmakers grilled California's top prison health care official Clark Kelso, about some very questionable spending. The fireworks at the Capitol involved the use of outside consultants by California Prison Health Care Services – consultants who made $40,000 to $50,000 a month – and then charged the state for housing, meals and dry cleaning.

"And what it says to us is that's just mismanagement," said Alyson Huber, a Democratic Assemblywoman from El Dorado Hills.

The tongue lashing from legislators was directed at Clark Kelso, the prison health care receiver, who was appointed by a federal court. California is under court order to improve inmate health care under the threat of the possible release of thousands of prisoners.

The State Assembly Committee on Accountability and Administrative Review issued these findings:

•    A prison consultant who cost taxpayers more than $200 in one week for dry cleaning
•    Two more who charged $2200 a month for rental apartments
•    Consultants who spent more than $1,200 for books – on management philosophies
•    And one consultant who charged $171 for parking her car at the Denver airport for two weeks – while she was in Sacramento making $3,000 a day

Clark Kelso explained the contract was signed by his predecessor – and has since been corrected on his watch.

"So no more expenses for housing and meals and dry cleaning and excessive spending like that?" this reporter asked the Receiver.

'I don't think the state approves dry cleaning at all,'' Kelso told CBS 13. "So no those things just aren't covered by state processes," Kelso added.

But lawmakers also questioned if taxpayers are getting a good bang for the buck on prison health care.

"The ratio of staff to inmates is much higher in California than it is in other states," Assemblyman Roger Dickenson told CBS 13. The Sacramento Democrat added, "The cost per inmate is much higher than it is in other states and yet our outcomes are not improving dramatically."

In response, Clark Kelso told CBS 13, "In terms of whether we're seeing improved results for those investments, clearly yes. The rate of deaths from doctor errors is down 82%. The scores that we're getting from the office of Inspector General are coming up."

- Inspector General Status Report (Powerpoint Presentation)

Lawmakers also accused the Receiver of not delivering on a promise to cut $800 million from his budget – and that's when the fireworks went off.

"You have been very seriously misled Mr. Garrick," Kelso fired back at Martin Garrick, a Republican Assemblyman from Carlsbad.

"That number was not my number. It was a number made up by the Governor's office in the previous administration," said Kelso, referring to Arnold Schwarzenegger.

Clark Kelso did cut $94 million from his budget – but lawmakers want even bigger savings.
Legislators say they'll be keeping a sharp eye on prison health care expenses in the months ahead – and will be exploring a possible $800 million cut to prison health care.