Texas is suffering from a crime epidemic that began in the late 1960's and early 1970's. Each year, approximately 2.7 million Texans (1 out of every 3 households) are victims of serious crimes. On an average day in Texas, 6 murders, 22 rapes, 108 robberies, and 165 life-threatening assaults are reported to police. The State crime rate, which was below the national average before 1975, is currently 38 percent above the national average. The crime rate in Texas is more than six times higher than in 1960 and 29 percent higher than in 1980, even though the national crime rate has dropped by 4 percent in the past 10 years. The primary factor in the disproportionate Texas crime rate is that for most criminals in Texas crime pays. Overall, fewer than 3 of every 100 serious crimes lead to prison terms, and the average sentence served has decreased by 56 percent since 1980. When the probabilities of arrest, conviction, and imprisonment are taken into account, a criminal can expect to spend only 7.4 days in prison for a serious crime. When incarcerated, inmates serve less than 20 percent of their sentences compared to 50 percent in 1974. Ninety percent of convicted felons in Texas are serving their sentences outside of prisons. Steps should be taken to increase arrest and conviction rates as well as the length of time spent in prison. The State can bear the costs of increased prison capacity by speeding privatization of prison construction and operation and by using alternative punishments such as electronic bracelets, boot camps, and other intermediate sanctions for nonviolent criminals. 9 tables, appended supplementary data, and 46 footnotes