This investigation indicates a need to examine alternative means of dealing with offenders. Current State reporting methods are inadequate. When direct operating costs, indirect operating costs, and construction and financing costs are included, the daily cost of housing a person in a Minnesota State correctional institution is nearly twice the reported figure. New methods should be developed to accurately identify and routinely report all costs of incarceration. A moratorium should be placed on all prison construction. Tables and charts are included. (Author abstract modified)