Since 1975, Michigan's prison system has been overcrowded by as many as 2,000 prisoners. Unless present trends are reversed, Michigan will be facing a prison population of over 19,000 by the mid-1990's. Despite efforts to expand present capacity of the system, a solution appears no closer now than it did in 1975. Therefore, the task force recommends immediate expansion of the community residential and alternative programs to levels consistent with current statutory and administrative restrictions on eligibility. Also recommended are enactment of legislation and development of departmental rules to broaden and clarify the availability of restitution and community service orders, extension of available jail time in conjunction with probation sentences, and enactment of a statewide funding mechanism that would provide financial incentives for local units of government to develop alternatives to prison. In addition, statewide implementation of sentencing guidelines and passage of the Revised Criminal Code to implement presumptive sentencing, appellate review of sentences, and to clarify procedures relative to alternatives to incarceration are urged. An intensive administrative review of all resident files to assure that all candidates who qualify for release are identified in a timely manner is required. Finally, in light of the depressed economy and reduced revenues, the task force recommends the continued funding and construction of the following facilities: Men's Temporary DeHoCo, Ypsilanti Men's Maximum Security, New Camps Pontiac and Tuscola, New Women's Facility, and DeHoCo Men's Regional Facility. Enactment of a series of last-resort statutory mechanisms that would reduce the prison population to its rate capacity upon a gubernatorial declaration of a State of Emergency in prisons is recommended. Appendixes are provided in the report. (Author abstract modified).