In fiscal year 1988, Montana's prison population reached an all-time high of 1,163, which exceeded the design capacity of the State's correctional facilities by 20 percent. For more than 1 year, the Criminal Justice and Corrections Advisory Council has obtained relevant data, solicited expert testimony, debated options, and developed recommendations for addressing the State's prison overcrowding. The council recommends implementation of a statewide intensive supervision program and the diversion of eligible offenders to prerelease centers, along with the discretionary early discharge of selected inmates. Also proposed are an increase in the number of probation and parole officers, an expansion of the sex offender treatment program at Montana State Prison, the creation of a pre-parole program at the prison, and statutory authorization for the conditional discharge of probationers and parolees before their sentences expire. 2 tables, 7 figures, and appended staff reports and the executive order creating the council