Granholm: California won't send inmates to Michigan

LANSING, MI – Governor Granholm says talks have broken off on sending California prison inmates to Michigan. The governor says she's still talking with other states about taking their inmates.

Governor Granholm says the right deal could keep state prisons in Standish or Muskegon open, and save hundreds of jobs. But California officials say Michigan's costs are more than they can afford as the state faces a budget crisis. A letter from the California Department of Prisons also says Michigan's medical and mental health services aren't good enough.

The governor says she is disappointed:

"Because the discussions were, we thought, very positive, very productive, so we have to go back to the drawing board."

The governor says talks are continuing with Pennsylvania and the Federal Bureau of Prisons about taking their felons. But she says Michigan won't take suspected terrorists being by held at Guantanamo Bay unless she's convinced that does not pose a security threat to Michigan.