The Legislative Budget Committee examined adult correctional institutions to: (1) identify potential legal constraints on implementing privatization and statutory changes needed to remove those constraints; (2) verify whether other States and jurisdictions have achieved cost savings through privatization without harm to the public good; (3) identify ways in which savings could be achieved; (4) evaluate the feasibility and cost savings potential of privatizing Department of Corrections institutions and facilities; and (5) evaluate best practices and develop prototypes for Requests for Proposals, contracts, and competitive procedures. The Committee's report does not make a recommendation on the policy issue of whether to privatize adult correctional facilities, but does describe procedures to be followed if privatization is pursued and offers general guidelines for minimizing the risk to the State while promoting cost savings without sacrificing quality. Notes, figure, appendixes