Following a review of recent litigation related to prison overcrowding, this report summarizes Nebraska prison conditions, pointing out that, because of an unprecedented growth in the inmate population, the State's criminal justice system is overburdened according to any measure. The rising cost of incarceration has been the price of tough crime laws and rigid sentencing requirements passed by the State legislature. The two policies being considered by the State, construction and diversion, cannot individually solve the problem, and even taken in tandem, will only defer it several years. In fact, three factors affecting policy, namely increasing admissions, increased probability of imprisonment, and increased use of prison for certain offenses, make it certain that population projections are too low. The report calls on the State to adopt policies designed to keep inmates out of prison, to reduce the length of prison sentences, to provide judges with sentencing flexibility, and to provide corrections officials with discretion to effectively manage prison populations. 2 tables and 7 figures