The issues addressed concern the effects of the new sentencing law, HB 1589, on the prison population; the long-range (3-10 years) projections for inmate populations; whether community alternative programs can be expanded to relieve the overcrowding situation, and the potential for placing inmates in less secure facilities. Findings indicate that the presumptive sentencing bill has not resulted in a reduction in the corrections inmate population, in changes in the distribution of offense seriousness, or in changes in the characteristics of convicted offenders. In addition, inmate population projections for 1985 are given; they range from a low of 403 to a high projection of 846. In those counties with community corrections programs, the commitment rates to the DOC are likely to show an immediate leveling off or decrease, although community programs are most likely to receive clients with treatment or service needs (i.e., alcohol and drugs, skills training). The report concludes that a new correctional facility will be needed unless current sentencing practices change, the use of community alternatives is increased, or the absolute or functional capacity of the DOC is increased. The costs of new facilities and alternative treatment centers and additional population projections are given. Graphic and tabular data; notes; and appendixes presenting HB 1589, community placement criteria, and other information are included. (Author abstract modified)