Results indicate that probation and parole offices are facing unprecedented challenges. Despite budget increases of more than 20 percent for many agencies and major improvements in risk management, more than 75 percent of all agencies said staff increases have not kept pace with the increasing caseloads. In addition to increases in staff-to-client ratios, respondents felt the offenders have greater supervision needs than in the past. Of local probation and parole offices, 50 to 68 percent reported that salaries are too low to attract qualified applicants and that financial and other incentives are insufficient to retain staff in positions where burnout is a major problem. In general, employees have high training needs, even in such basic areas as counseling, report writing, and offender monitoring. Over half of the local offices also report a need to expand and improve community resources including drug and residential programs, housing referral services, vocational education, job readiness training, and mental health services. Over the past 15 years, agencies have expanded their responsibilities from primarily presentence investigation and offender supervision to pretrial diversion, halfway houses and other alternative programs and activities. 6 exhibits and 3 footnotes.