AN OVERVIEW OF THE DEPARMENT'S ORGANIZATIONAL STRUCTURE, GOALS, OPERATIONS, PROGRAMS, AND MANAGEMENT/BUDGET FUNCTION OPENS THE REPORT. FISCAL INFORMATION IS PRESENTED, AND TRENDS (CRIMINAL JUSTICE, EMPLOYMENT, POPULATION) AFFECTING CORRECTIONS ARE NOTED. THE DEPARTMENT'S PROBLEM AREAS ARE IDENTIFIED, AND RECOMMENDATIONS FOR ADDRESSING THE PROBLEMS ARE OFFERED. SUMMARY DESCRIPTIONS ARE PRESENTED OF PROGRAMS REGARDED BY THE DEPARTMENT AS PROGRESSIVE, AND OF EXISTING AND PROPOSED DIVERSIONARY PROGRAMS. A PROPOSED WORK-HOUR FORMULA FOR FUNDING PROBATION AND PAROLE FIELD STAFF IS DESCRIBED IN DETAIL. EACH OF THE DEPARTMENT'S FIVE REGIONS REPORTS ON THE STATUS OF ITS INSTITUTIONS, COMMUNITY FACILITIES, AND POPULATIONS OF INMATES, PROBATIONERS, AND PAROLEES. A MAP SHOWING PROPOSED AND PLANNED CONSTRUCTION IS PROVIDED. STATISTICS ARE PRESENTED ON THE CHARACTERISTICS OF INCARCERATED AND COMMUNITY-SUPERVISED OFFENDERS, TOGETHER WITH CASELOAD PROJECTIONS THROUGH 1980. IT IS NOTED THAT FLORIDA'S PRISON POPULATION GROWTH RATE DROPPED FROM A NET INCREASE OF 2,097 FOR FISCAL 1976-1977 TO AN INCREASE OF ONLY 612 FOR 1977-1978, WHILE THE GROWTH RATE FOR PROBATION AND PAROLE POPULATIONS CONTINUED AT ABOUT THE SAME PACE AS IN PRIOR YEARS. DURING FISCAL 1977-1978, THE DEPARTMENT UNDERTOOK PLANNING ACTIVITIES IN THE AREAS OF HEALTH SERVICES AND PRISON INDUSTRIES, AND BEGAN THE TASK OF COMBINING THE OFFENDER RECORDS SYSTEMS OF THE DEPARTMENT OF CORRECTIONS AND THE PAROLE AND PROBATION COMMISSION INTO A SINGLE SYSTEM. (LKM)