The framework is based on the simple premise that the level of State financial support for corrections, the policy output of interest, is a function of two general factors: internal institutional characteristics and external environmental characteristics. The study hypothesizes that corrections spending will be about the same in two States similarly situated in terms of institutional and environmental characteristics. The institutional factor represents legislative, legal, and prison system variables. The environmental factor includes economic, sociodemographic, and intergovernmental variables. Findings from a cross-section analysis of the 48 contiguous States indicate that variables associated with a State's external environment offer the best predictors of corrections expenditures. Significant internal variables are limited both in number and in importance. The authors conclude that State governments exert little direct control in determining corrections expenditures. Implications and suggestions for future research on corrections expenditures are discussed. 75 references, 6 notes, 6 tables, and 1 figure