THE TEXAS DEPARTMENT OF CORRECTIONS OPERATED THE LARGEST STATE PRISON SYSTEM IN THE NATION, WITH A CURRENT PRISON POPULATION OF MORE THAN 24,000. THE TEXAS SYSTEM INCLUDES 15 PRISON UNITS, 3,350 EMPLOYEES, AND HAS A BUDGET FOR THE CURRENT BIENNIUM OF $208 MILLION. THE TEXAS PRISON SYSTEM IS A COMBINATION OF AGRICULTURAL, INDUSTRIAL, CONSTRUCTION, AND EDUCATIONAL ENTERPRISES IN ADDITION TO ITS PRIMARY TASK OF ISOLATING CRIMINALS FROM SOCIETY. HEALTH CARE SERVICES, RECREATIONAL PROGRAMS, LAUNDRY AND FOOD SERVICES, AND EDUCATIONAL PROGRAMS FOR INMATES ARE ALL THE RESPONSIBILITY OF THE DEPARTMENT. THE CITIZEN BOARDS PLAY AN ACTIVE, INFLUENTIAL ROLE IN DEPARTMENT MANAGEMENT AND CONTINUALLY PROVIDE VITAL PUBLIC INPUT TO THE SYSTEM. STATE LAW VESTS CONTROL OF THE DEPARTMENT JOINTLY IN THE 9-MEMBER BOARD OF CORRECTIONS AND IN THE DIRECTOR. THE STATE LEGISLATURE MAINTAINS CONTROL OVER APPROPRIATIONS AND SPENDING BY GROUPING REVENUES INTO FUND ACCOUNTS. WITHIN THE FRAMEWORK OF THE LAW AND APPROPRIATIONS, THE DEPARTMENT HAS DEVELOPED AN OPERATING STRATEGY BASED LARGELY ON DISCIPLINE, WORK, AND EDUCATIONAL OPPORTUNITIES FOR INMATES. DESPITE THE PRESENT EFFICIENCY OF THE SYSTEMS, THE MANAGEMENT SURVEY POINTED OUT CHANGES TO BE MADE. BEFORE THE START OF EACH FISCAL PERIOD, THE DIRECTOR AND HIS STAFF SHOULD ENSURE THAT THE BOARD UNDERSTANDS THE NATURE OF ACTIVITIES TO BE FINANCED BY THE OPERATING BUDGET IT APPROVES. IN ADDITION, ATTENTION SHOULD BE DIRECTED TOWARD THE HIGH TURNOVER RATE THAT EXISTS AMONG THE SECURITY FORCES. INITIALLY, IT APPEARS THAT LACK OF OPPORTUNITY FOR PROMOTION IS A MAJOR FACTOR CONTRIBUTING TO THE RECRUITMENT/RETENTION PROBLEM. FINALLY, MORE OFFICER HOUSING SHOULD BE PROVIDED AT EACH PRISON UNIT, THE DEPARTMENT SHOULD REVIEW THE TRAINING ACADEMY PROGRAM TO SEEK CURRICULUM AND INSTRUCTOR CAPABILITY INPROVEMENT, AND PERSONNEL MANAGEMENT AND COMMUNICATIONS SHOULD BE IMPROVED THROUGH APPROPRIATE TRAINING PROGRAMS. FOOTNOTES, STATISTICAL DATA, FLOW CHARTS AND DIAGRAMS ARE INCLUDED. (LWM)