From 1970 through 1980, an increasing number of cases were handled informally because of the inability of the criminal justice system to handle the increased caseload through formal processing ending in prison sentences. The diversion policy implemented in the 1980's thus followed an existing trend, although the existing trend was not due to a conscious policy decision to reduce the stigmatization of offenders and the negative effects of imprisonment. An assessment of the diversion impact from 1980 through 1985 must determine whether diversion has occurred for offenders whose cases would have previously been formally processed. There is no evidence that this has occurred. Instead, diversion policy has offered community treatment programs for persons who would have previously received dismissals without conditions. Those offenders who are formerly processed and imprisoned are receiving longer sentences. This is true for both juvenile and adult offenders. 7 tables and 41 references.