Growth trends in the incarcerated population and offenders under parole supervision in Colorado have continued through fiscal year 2003. The average incarcerated population in fiscal year 2003 was 18,636 compared to 17,367 the previous fiscal year. The incarceration rate has increased 31.4 percent since 1997, as the incarcerated population increased 52.7 percent while the State population growth was 16.2 percent for this time period. The impact of recent sentencing changes, including the mandatory parole provisions, are reflected in the admission and release data presented in this report. Information is also provided on the sentencing of sex offenders under the lifetime supervision legislation enacted by the Colorado Legislature in 1998. Security-level definitions and designations for the correctional facilities operated by or under contract with the Department of Corrections were changed in legislation enacted in 2000, and these changes are reflected in data presented throughout this report. The 2003 legislative session authorized the construction of the Colorado State Penitentiary II. Federal funds received in 2003 were applied to relocate the Youthful Offender System and provide additional capacity for adult female offenders. In July 2002, the Colorado State Supreme Court upheld its previous ruling about the application of conflicting parole statutes to sex offenses committed on or after July 1, 1993, but prior to November 1, 1998. The Supreme Court's ruling determined that the mandatory parole provisions implemented in 1993 are not applicable to these offenders, resulting in parole being discretionary. The report's section on prison releases discusses the court decisions leading up to this hearing, along with their effects. 77 tables and appended data on security levels and facility populations as well as operational capacity by facility