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This report summarizes the use of policy analysis by the Nevada government to address issues associated with prison overcrowding and escalating correctional costs. A research team was formed to gather information, provide statistical analyses of current State sentencing and parole practices; and conduct simulation analysis on the impact of alternative policies on prison, jail, parole, and probation populations. Over 20 legislative reform proposals were tested via the simulation model to determine their impact on the correctional system. The final projection took into account the simultaneous population and cost effects of adopting sentencing, parole, and good-time policy reforms, thus permitting estimates of the interactive effects of policies introduced over a staggered time period and affecting both prison admissions and terms. The findings of the policy analysis dramatized the effects of various policy options. While no immediate changes have thus far occurred, the State is moving toward a process of carefully considering the consequences of possible policy reforms. (NCJRS, modified).