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State Software Contract Focus Of Hearing

A grand jury in Sacramento will begin hearing testimony Tuesday about the state€™s canceled computer software contract with Oracle.

The $95 million contract was supposed to save the state more than $100 million. But the state auditor said the contract could cost the state as much as 41 million dollars more than if it had stuck to its previous agreements.

Oracle made a $25,000 campaign contribution to Governor Davis five days after the contract was signed in 2001. Both the governor and the company said there was no link between the donation and the contract. Davis returned the money.