Questionnaires were sent to officials of State agencies most knowledgeable about State and local governments' policy and practice affecting the operations, financing, and use of treatment programs for drug-dependent offenders and about State and local programs available to such offenders. findings indicate that although budgets for drug treatment services for all drug-dependent clients have increased over the past 5 to 10 years, total resources available for such services continue to fall below those that respondents report are needed. Moreover, treatment services budgets are exceptionally vulnerable to shifts in States' funding priorities and economic conditions, resulting in Federal funds composing significant percentages of total treatment funds. Respondents report few distinctions between treatment policy and practices for drug-dependent offenders and other drug-dependent clients. Appropriate placements are slightly less available for drug-dependent offenders than for other drug-dependent clients. The 1988 Federal legislation authorizing funding for State and local drug treatment programs may tend to increase States' reliance on Federal funds for their treatment services. The uncertainty of continued Federal funding in this area, however, should be taken into account as States plan future drug treatment budgets. Appended questionnaire