At the same time, a new youth-in-trouble institutional system that includes traditional and new types has emerged to deal with youth who would potentially come into conflict with juvenile laws because of their "acting out" behavior. This broader system probably results from the shift in balance between the public and private sectors, increases in voluntary commitment, a redefinition of delinquent behaviors, an expansion of mental health boundaries and services, and the availability of Federal funding. Available data on the increase in use of juvenile corrections and mental health institutions is summarized in terms of 10 indicators: number of facilities, number of residents, average length of stay, number of admissions, average facility size, mixture of problem-youth in facilities, age composition, restrictiveness or openness to the community, auspices for profit, and expansion of third party funding. Trends in deinstitutionalization, primarily for children under 12 in the child welfare system but not for troubled youth in other categories, are a result of ideology, funding, public entrepreneurship, parental acquiescence, and laissez-faire regulation policies. Five standards -- effectiveness, least coast, social and individual costs, fairness, and promotion of other values -- dictate the direction of public policy. The development of a new transitional policy requires confronting and dealing with persistent institutional trends. If the trends can be stabilized nationwide, funds could be reallocated to expand home-based and community-based services. 7 references. (Author abstract modified)