OVERCROWDING HAS BECOME A MAJOR PROBLEM IN OREGON'S THREE STATE INSTITUTIONS. IN 1976 THE STATE HAD A PREFERRED SINGLE-CELL CAPACITY OF 2,181 REGULAR AND EMERGENCY BEDSPACES AND AN EXTENDED INSTITUTIONAL CAPACITY OF 2,744. THE ACTUAL INSTITUTIONAL POPULATION COUNT ON OCTOBER 1, 1976, WAS 2,744. A PRISON POPULATION PREDICATION ESTIMATED CLOSE TO 2,900 PRISONERS, BY JULY 1, 1977, WHICH WOULD RESULT IN CONTINUED OVERCROWDING. OVER 100 RECOMMENDATIONS ON BOTH THE IMMEDIATE OVERCROWDING PROBLEM AND ANTICIPATED LONG-RANGE PROBLEMS OVER THE NEXT 15 YEARS WERE MADE. THE KEYSTONE WAS FURTHER DEVELOPMENT OF OREGON'S COMMUNITY CORRECTIONS CONCEPT, WHICH HAS RESULTED IN GREATER PUBLIC PROTECTION, OFFENDER REHABILITATION, AND MORE EFFECTIVE RESOURCE ALLOCATION. IN ADDITION TO COMMUNITY SUPERVISION PROVIDED BY THE STATE FIELD SERVICES SECTION, 15 EXISTING LOCAL COMMUNITY CORRECTIONS PROGRAMS PROVIDE COMMUNITY SUPERVISION IN 21 COUNTIES. A PROPOSED COMMUNITY CORRECTIONS ACT WOULD ENHANCE OPPORTUNITIES FOR COMMUNITY SUPERVISION AND FULL USE OF LOCAL REHABILITATIVE RESOURCES BY FOSTERING INCREASED COOPERATION BETWEEN STATE AND LOCAL GOVERNMENTS. ADDITIONAL RECOMMENDATIONS DESCRIBE POLICY OPTIONS AND PROGRAM CHANGES TO IMPROVE CRIMINAL CASE DISPOSITIONS, COMMUNITY SUPERVISION, INSTITUTIONAL SUPERVISION, AND EVALUATION PROCEDURES. TABLES ARE INCLUDED. A GLOSSARY, 14 DRAFT LEGISLATIVE PROPOSALS, AND A FUNDING OPTION ARE APPENDED. (KCP).