The total capacity of all offender placements in Washington State in 1995 was approximately 92,000. Overall, demand in 1995 exceeded capacity by 38 percent. One figure shows the average annual (1995) operating cost per unit capacity for a wide variety of offender placements, excluding capital costs. In 1995 the most seriously crowded correctional placements were local supervision services and county jails. The Capacity Study looked at ways local jurisdictions can manage the demand for jail beds. Three strategies were identified. They are to increase capacity and accommodate the added demand, reduce admissions or lengths of stay and mitigate the effects of demand, or add correctional options and divert demand to other placements. Over the last 4 years, Washington State jurisdictions have used all of these strategies. The Study developed a model to help policy makers understand the costs and consequences of policies alternatives. The model can be used to show how the State uses offender placements, to estimate the effects of growth in the offender population, and to evaluate the implications of changes in policy. Using the model, it is estimated that by the year 2000, with no change in current policies and practices, the additional annual operating cost of placements will be approximately $157 million. 2 tables and 2 figures