Since the mid-1970s, California has led a national trend towards prison construction. Now, the state is somewhat belatedly joining a new move toward addiction and mental health treatment, shorter sentences, and early release for good behavior.

With violent crime low, spending on prisons high, and state funding tight, observers see an ideal environment for change. "Even in stark economic terms, it's become very difficult to argue that our investment in prisons is delivering a great result," said corrections expert and author Michael Jacobson. "So I think we're at a historic moment when ... conditions are ripe for dramatic reform."

So-called "reentry" programs are now in vogue nationwide, and California -- with the nation's highest recidivism rate and severely overcrowded prisons -- is looking for ways to trim a $6.5-billion annual corrections budget. Schwarznegger, who has no concerns about being labeled soft on crime, has shaken up the prison system and launched a national search for effective rehab programs.

"We're playing catch-up," said Joan Petersilia, a University of California criminologist. "We're trying to put Humpty Dumpty back together again, and we have such a broken system that we have a long ways to go."

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