Think about it this way: in the days before motorised transport, were prisoners always kept within easy travelling distance of their relatives? I think not, and it wasn't cruel-and-unusual then.
For practical purposes, though, Montana to California is a bit too far. But Nevada spends only $20K, and there's not much of Calfornia which isn't within a reasonable daytrip of somewhere in Nevada.
Mexico probably spends even less, though contracting prisons out to Mexico might cause genuine constitutional issues...
1. http://scholar.google.com/scholar_case?case=6294791264839700...
2. http://articles.latimes.com/2010/jan/13/local/la-me-prisons1...
3. http://www.rbg-law.com/prison-overcrowding-case-will-be-hear...
They would save significantly less in Michigan so is that more of a capacity measure than cost savings?