Gray Davis was already planning to shut down five privately run prisons (all well-run, according to a state audit) which were not part of the CCPOA prison guards union. He raised the salaries of unionized prison guards by 34%, costing $1 Billion. The prison guards donated $251,000 to Davis two weeks later.
A few articles on this topic:
Davis - A big prison paycheck San Francisco Chronicle | April 2, 2002
California:Governor is looking to kill privately run prisons Sacramento Bee | May 9,2002
(mentioned Report links money to key legislation Sacramento Bee | March 19, 2002)
Oh, but that would tick off the prison guard union and they just gave him over $250,000 ... and he gave them a huge raise. In the middle of the budget crisis. Hmmmmm ....