Watch Secretary Cate's response to the three-judge panel ruling here. The bottom line: the administration has a plan for decrowding over time, but it is not a Federal Court's job to impose such a plan. They are examining the appealability of the decision.
Read the gist of the ruling here.
The simple math: The court order requires the release of about 45,000 inmates. Schwarzenegger's plan is to release 27,300. How are 17,700 additional releases to be achieved?