I heard Commiefornia is supposed to release about 40,000 inmates because of overcrowding.
http://www.deseretnews.com/article/700086606/US-Supreme-Court-to-consider-California-prison-crowding.html
How does this happen?
Actually, that kind of thing is common (though the numbers differ), at least here in Missouri, according to some training I had within the Department of Corrections. (I took the training in preparation to become a volunteer at a prison that's in my area.)
Missouri has x number of beds in their prison system. The system stays at 100% capacity. When one new prisoner comes in, one must leave to make room for him/her.
That's why you've got those who are released on parole, or some other type of program, before their full sentences are served.
Another thing the instructors mentioned is that increasing the number of prisons is a no-win situation for the politicians. Therefore, building new prisons isn't a high priority. Consequently, the prison system has to be resourceful in dealing with the hand they're dealt.
I don't know for sure, but I would be surprised if Califunny is any different than Missouri.