States that have shifted their resources to community programs include Arkansas, Connecticut, Kentucky, Missouri, Oklahoma, Pennsylvania, and West Virginia. Moreover, three States have completely closed their large juvenile institutions. According to a RAND Corporation study, keys to effective juvenile rehabilitation programs include a good staff, the development of respect between teenagers and their guardians, and programs that help youth develop positive self-images, experience success, and understand negative behavior. The article discusses Massachusetts' Homeward Bound program, that state's experiences in moving into community programs, and Carousel House and Esperanza in Utah. Oregon's decision to close its largest training school for boys and focus on community-based programs is discussed. Also described is the privately run Associated Marine Institutes used in four States. Photographs.