The fact that counties are being compensated for housing State-ready prisoners does not ease the burdens imposed. Contrary to what the Federal Government allows in determining actual costs for prisoner housing, the State does not allow for the inclusion of facility depreciation, nor does it allow new construction or remodeling costs to be factored in, even though these costs may be created by bearing the State's responsibility for housing its prisoners. In effect, counties are subsidizing the State and its corrections system. An additional problem is the loss of jail space for addressing local incarceration needs. Also, disciplinary problems are created by the State prisoners who know they will not be sent to State prison for disciplinary problems. Alternative sentencing options for nonviolent, low-risk offenders have been developed, but there is still not enough jail and prison space for violent, dangerous offenders. The Montana Legislature should act quickly to add to existing prisons or build new prisons. Failure to do so will exacerbate the situation until local sheriffs and their constituencies refuse to take any more State prisoners. 2 figures