THE FOCUS OF THIS STUDY HAS BEEN THE OPERATION OF PRISON INDUSTRIES IN ADULT STATE CORRECTIONAL INSTITUTIONS FOR THE PURPOSE OF DETERMINING THE CHANGES WHICH SHOULD BE INTRODUCED TO INCREASE THE ECONOMIC AND REHABILITATIVE EFFECTIVENESS OF SUCH INDUSTRY PROGRAMS. ECONOMIC BENEFITS OR COSTS THAT SOCIETY ACCRUES FROM INMATE PARTICIPATION IN PRISON PROGRAMS GENERALLY -- AND PRISON INDUSTRIES, IN PARTICULAR -- ARE NOT LIMITED TO THE PERIOD OF INCARCERATION, BUT EXTEND INTO THE POSTRELEASE PERIOD. THE REHABILITATIVE AND SELF-SUFFICIENCY GOALS OF PRISON INDUSTRIES MAY BE COMPATIBLE AND BOTH MUST BE ALLOWED FOR; IN THIS EVALUATION, THE COMPLETE LIFE-CYCLE COSTS AND BENEFITS THAT CAN BE ATTRIBUTED TO THESE PRISON PROGRAMS ARE IDENTIFIED, AND A METHODOLOGY IS PROVIDED FOR MEASURING THEIR EFFECTIVENESS. THIS STUDY HAS RESULTED IN THREE BROAD EFFORTS, EACH HAVING SPECIFIC PURPOSES INCLUDING A RESEARCH EFFORT GEARED TO OBTAINING INFORMATION ABOUT HOW A TYPICAL PRISON INDUSTRY SYSTEM FUNCTIONS AND THE TYPES OF CHANGES NEEDED TO UPGRADE THE MANAGERIAL AND REHABILITATIVE FUNCTIONS; AN EVALUATION EFFORT THAT INCLUDED AN ANALYSIS OF THE BUSINESS MANAGEMENT AND REHABILITATIVE FUNCTIONS, AND THE DEVELOPMENT OF RECOMMENDED PROGRAM CHANGES REQUIRED TO CREATE SELF-SUPPORTING SYSTEMS WITH INCREASED POTENTIAL; AND A TECHNICAL ASSISTANCE EFFORT INTENDED TO PROVIDE THE SYSTEM WITH EXPERTISE IN THE AREAS OF MANAGEMENT INFORMATION SYSTEMS, AND FINANCIAL AND PRODUCTION ANALYSES. THE PRISON INDUSTRY STUDY REQUIRED A LITERATURE REVIEW, HOST STATE SITE SELECTION, A JOB MARKET SURVEY, AN INMATE MANPOWER CAPABILITIES SURVEY, ECONOMIC AND MANAGEMENT REVIEWS OF PRISON INDUSTRY, A PROGRAM MANAGEMENT PLAN FOR PRISON INDUSTRY REORGANIZATION, AND TECHNICAL ASSISTANCE. TO DEVELOP A BROAD UNDERSTANDING OF HOW PRISON INDUSTRIES FUNCTION, PRISONS THROUGHOUT THE U.S. WERE VISITED; IN ORDER TO SELECT A SINGLE STATE FOR AN INDEPTH STUDY, OVER 34 PRISONS AND 80 INDIVIDUAL PRISON INDUSTRY SHOPS WERE INSPECTED. THE STUDY TEAM REVIEWED WORK AND TRAINING PROGRAMS, BUDGETS, INFORMATION SYSTEMS, FINANCIAL REPORTS, INMATE SCHOOLS, EMPLOYMENT SERVICES AT RELEASE AND POSTRELEASE SERVICES. CONNECTICUT WAS CHOSEN BECAUSE IT BEST FIT THE EVALUATION CRITERIA REGARDING OPPORTUNITIES TO CONDUCT A THOROUGH ANALYSIS, TO INITIATE AN IMPLEMENTATION PROGRAM, AND BECAUSE OF ITS SOCIOECONOMIC CHARACTERISTICS. ALL OF THE STUDY REQUIREMENTS MENTIONED PREVIOUSLY WERE APPLIED TO CONNECTICUT'S PRISON INDUSTRIES. ALTHOUGH EXTENSIVE STUDY FINDINGS ARE DETAILED IN THIS VOLUME REGARDING CONNECTICUT AND SIX OTHER STATES VISITED BY THE HOST SITE SELECTION TEAM, THE TOPICAL FINDINGS SUGGEST THAT, WITH RARE EXCEPTION, PRISON INDUSTRY CONRIBUTIONS TO THE STATE, PRISON, AND INMATE WORKER FALL FAR BELOW POTENTIAL. THIS FAILURE IS DUE TO MANY CAUSES, NOT ALL OF WHICH ARE UNDER THE CONTROL OF INDUSTRY MANAGERS. STATISTICAL AND TABULAR DATA REGARDING THE FREE VENTURE MODEL FOR CORRECTIONAL INDUSTRIES, AND SUGGESTIONS CONCERNING MODEL IMPLEMENTATION, ARE PROVIDED. (KBL)