THE CHOICES FOR PRISON CONSTRUCTION IN THE TEN YEARS BETWEEN 1977 AND 1987 CAN BE ILLUSTRATED BY DESCRIBING FOUR DIFFERENT CAPITAL INVESTMENT STRATEGIES, INCLUDING EXISTING BUREAU OF PRISONS POLICY. THE FIRST THREE OPTIONS DEAL PRIMARILY WITH VARIATIONS IN THE QUALITY AND TYPE OF CONFINEMENT (SIZE OF INSTITUTION, AMOUNT OF LIVING SPACE AND PRIVACY, AND LOCATION OF CONFINEMENT) BASED ON THE SAME POPULATION PROJECTION OF 33,900 BY FISCAL YEAR 1987. THE FOURTH OPTION REFLECTS A SIGNIFICANT EXPANSION IN PRISON POPULATION DUE TO GREATER USE OF IMPRISONMENT. OPTION 1 WOULD PROVIDE FOR PROJECTED POPULATION GROWTH ONLY WITH NO IMPROVEMENT IN EXISTING PRISON CONDITIONS. THERE WOULD BE NO TEN YEAR INVESTMENT COST, THE ESTIMATED INCREASE IN ANNUAL OPERATING COSTS WOULD BE $14 MILLION, AND NO NEW PRISON BEDS AND 1,350 ADDITIONAL HALFWAY HOUSE BEDS WOULD BE PROVIDED. OPTION 2 WOULD PROVIDE FOR PROJECTED POPULATION GROWTH AND CONTINUE THE EXISTING BUREAU OF PRISONS POLICY OF IMPROVING THE QUALITY OF CONFINEMENT. THE TEN YEAR INVESTMENT COST WOULD BE $285 MILLION, THE ANNUAL OPERATING COSTS WOULD BE $38 MILLION, AND 6,750 NEW PRISON BEDS AND 1,350 ADDITIONAL HALFWAY HOUSE BEDS WOULD BE PROVIDED. UNDER OPTION 3 THE EMPHASIS WOULD BE ON REDUCING CONVENTIONAL IMPRISONMENT BY STRESSING COMMUNITY-BASED PROGRAMS (HALFWAY HOUSES). THE TEN YEAR INVESTMENT COST WOULD BE $70 MILLION , ADDITIONAL ANNUAL OPERATING COSTS WOULD BE $14 MILLION, AND 1,700 NEW PRISON BEDS AND 4,300 ADDITIONAL HALFWAY HOUSE BEDS WOULD BE PROVIDED. THE LAST ALTERNATIVE, OPTION 4, WOULD INCREASE THE EMPHASIS ON THE USE OF CONVENTIONAL IMPRISONMENT, REQUIRING A SIGNIFICANT EXPANSION OF PRISON CAPACITY. THE TEN YEAR INVESTMENT COST WOULD BE $510 MILLION AND ADDITIONAL ANNUAL OPERATING COSTS WOULD BE $186 MILLION. THIS OPTION WOULD PROVIDE 12,050 NEW PRISON BEDS AND 1,350 ADDITIONAL HALFWAY HOUSE BEDS. TABULAR DATA IS INCLUDED. (AUTHOR ABSTRACT)...ELW