Because of the limited availability of certain precise data, the analysis is based on several reasonable assumptions. Cost implications are therefore reasonable projections rather than statistically significant data. P.L. 120, Article 12, represents a broad definition of community corrections which attempts to reduce prison overcrowding by providing economic incentives for counties to provide criminal sanctions to the least serious felony offenders. About 25 percent of those currently incarcerated in State institutions would be eligible for the new subsidy plan, without a 'charge back' cost or economic penalty to the participating county. Through a combination of placement in halfway house programs, community service restitution, monetary restitution to the victim, probation, and jail time, the 1,324 offenders could receive locally administered criminal sanctions at an estimated annual cost of $1,654,668. The cost of keeping these 1,324 nonviolent and least serious offenders incarcerated in State institutions for a year is estimated to be between $11,222,224 and $20,230,720, based upon use of only the direct operating cost of incarceration in a State institution or a more complete determination of the cost of incarceration to taxpayers. In examining the relationship between benefit and cost related to the new subsidy plan, a benefit/cost ratio of 23 was found, representing 23 times the economic benefit of community corrections in relationship to its cost. Six references and tabular data are provided. An appendix presents Indiana community corrections law. (Author summary modified)