Indiana officials say they need to build more prison cells because they will run out of beds for male inmates within two years.
Prison officials say they need $50 million for new cells because of recent changes in calculating good time for inmates, reported The Journal Gazette in Fort Wayne.
The growth is expected despite a 2014 overhaul of the criminal justice system that calls for many nonviolent prisoners to be locked up locally.
The overhaul came in the wake of exploding prison populations which grew from 6,281 in 1980 to 29,377 in 2013.
Rep. Dan Leonard, R-Huntington, said the state expects many counties will be asking for money to help accommodate the influx to local jails.
Some 2.2 million men and women are imprisoned in the United States, making it the highest incarceration rate for any industrialized nation in the world.