You don't have to offer release as the carrot. We could just as easily raise the expectations for some of the privileges they take advantage of now.

A restructuring of the prison system could help with the costs of operation as well as provide a level of "life skills" lessons for those that qualify for release. We could start by disallowing outside money into the prison system for inmates. Then, only offer the bare minimum for free, 3 hots & cot + minimal time outside the cell. Then we offer different jobs based on need/skills/safety that can be performed for a minimal wage. Inmates can then purchase some conveniences with the "money" they earn. Also, a portion of their earnings should be set aside for release so they have something to get started with.

Inmates that refuse to participate can be left in their rooms as needed. Inmates that act out can be relocated to solitary. Bad behavior can cost them privileges they worked hard for, especially if they are tiered.

Just my thoughts.