Available information demonstrates the need for California to develop a comprehensive plan that addresses statewide needs in a timely and cost-effective manner, and a critical element of the state's capital needs is the prison system. Inmate population projections indicate the number of inmates will exceed prison capacity by about 9,000 in 1998. Three specific legislative steps are recommended to accommodate inmate growth: (1) authorize two prisons and appropriate funds in the amount of $13 million; (2) adopt a long-term strategy to accommodate inmates, one that reduces inmate population growth and saves money; and (3) authorize a general obligation bond measure to finance the necessary prisons. The emphasis is on reducing inmate population growth, given significant costs associated with building and operating new prisons. 1 table