The majority of offenders under supervision and custody at any point in time are overwhelmingly under the supervision of a probation or parole system. Probation and parole is a fundamental component of the corrections strategy, however, the business of probation and parole is costly to operate. Direct expenditures for State correctional services nationwide totalled $4.26 billion. New concepts in the area of probation and parole include collecting fees from recipients of the service, county administration of probation services, sentencing reform, revision of the parole board decisionmaking process, and the redefinition of the roles of probation and parole officers. Probation and parole in the past, at present, and in the future will provide the most cost-effective response to offender control. While modifications and strategies help to enhance the effectiveness of supervision, the fundamental base remains intact. 1 figure, 57 references.