The vast majority of mentally ill offenders are not violent, although their illness necessarily manifests itself in ways that society often finds unacceptable. The number of mentally ill offenders is growing because needed mental health care is not available to those who are no longer hospitalized due to the deinstitutionalization movement and the restrictive civil commitment laws. Incarceration of persons with mental illness is likely to aggravate their conditions. To improve the status of mentally ill offenders: (1) communication and coordination among corrections, mental health, social services, and vocational rehabilitation departments should be improved; (2) training in handling the mentally ill should be provided for mental health and correctional staff; (3) the number of mentally ill offenders should be assessed to determine the resources needed to care these inmates; (4) the number of psychiatrists and psychologists in prisons should be increased; (5) medical schools should be encouraged to incorporate training with mentally ill disorderd offenders into their programs; (6) creative funding mechanisms and new sources should be identified; and (7) sufficient funding for effective community services should be provided. Practical planning strategies can be developed for the provision of at least minimum mental health services and for the improvement of linkages between jails and mental health agencies. (Specific programmatic and legislative responses of the states are included.) (ABL)