CDI was created in 1980 to provide a sentencing alternative for certain nonviolent offenders who require less than incarceration, but more than probation supervision. Eligible offenders are supervised within the local community, receive services, and required to perform unpaid community service work. CDI has diverted offenders from incarceration, saved the State money, and increased local involvement in crime response. Preliminary data show that few successfully terminated felons have recidivated. Three problems, however, affect the program's effectiveness: judges sometimes refer offenders to CDI for evaluation prior to sentencing, the Department of Corrections (DOC) has not assessed the CDI population to determine if certain types of offenders are not suited to diversion, and the DOC does not track repeat offenses of CDI graduates to assess the program's rehabilitative nature. The report examines CDI's organizational structure, planning and management aspects, and client services in detail. Corrective recommendations address program deficiencies. Tables and graphs.