SACRAMENTO (CBS / AP) — California prison officials want to halt a $4 billion prison-construction program and bring back all inmates held out of state as part of a wide-ranging department restructuring.

A corrections department master plan released Monday outlines the department’s recommendations for ending years of federal court oversight, overcrowding, poor inmate medical and mental health treatment and soaring budgets.

The plan was to be discussed later Monday at a Capitol news conference. It is intended to map the future of the nation’s largest state prison system as it is being transformed by ongoing state budget deficits and federal court orders.

KCBS’ Susan Kennedy Reports:

The plan also calls for closing a medium security prison in Riverside County. If all changes are implemented, the department projects its budget will be reduced by $1.5 billion annually.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)