Classification of 79 wards admitted in April 1988, indicated that 16 boys and 3 girls required secure custody as assessed by the Delaware scale, which placed the greatest number of youth in this category. HYCF's own dangerousness scale placed 5 boys and 2 girls in this category. For these few youth, small, locked facilities with high staff/resident ratios, individualized planning, and gradual reentry mechanisms are recommended. For the remainder, a variety of community-based options are appropriate, such as wilderness challenge programs, experiential education, enriched employment/vocational training, intensive family outreach and monitoring, supervised independent living, extended family homes, and staff-secure custody. While these reforms are needed immediately, budgetary constraints require a two-phase implementation plan. Between 1988 and 1989, the State should use existing residential programs for early parole, establish a wilderness challenge program and an intensive family outreach and monitoring program, and contract with a private agency to place youth into community programs and train HYCF staff in community placement. From July 1989 on, the State should create a division for youth, restructive funding, develop a continuum of care program system, and renovate existing HYCF structures. Supplemental information is appended. 15 tables and 34 references.