California, home to 1 in 10 American state prison inmates, is getting a nudge from the federal government to move faster to revamp its overcrowded prison system. Operating at almost double capacity, with almost 172,000 inmates in 33 facilities, California's problems reflect a national pattern, say experts. Inmates at the Mule Creek State Prison, for example,  fill a gymnasium that was modified to house prisoners last year. Already engaged in an extensive $7.7 billion plan to dramatically expand prison capacity, the state now faces federal pressure to oversee another $7 billion in upgraded healthcare facilities for prison inmates. The legislature this week will examine a request to approve the new spending, which would require new borrowing. The plan comes at a crucial time for California's prison system – and the state's finances. The combined tab of nearly $15 billion for prison reform has dismayed lawmakers already faced with a $16 billion budget deficit that has prompted huge proposed cuts in spending on education and health care. "This couldn't have come at a worse time," said Steven Maviglio, spokesman for Assembly Speaker Fabian Nunez. "It makes a disastrous budget scenario even worse."