The objectives of the Phase I assessment were to describe the strategic planning processes the States have established, evaluate the content of the strategies that have resulted, report on State reactions and responses to the program, and develop recommendations on ways in which the strategic planning function might be improved. All 56 recipients of formula grant funds were contacted by telephone and surveyed by mail as part of the assessment. Site visits were also made to a number of States. The assessment found that States have embraced strategic planning for drug control, but the strategies are not comprehensive in the sense implied by the legislation. Several of the Federal mandates that govern strategy development sometimes do not receive full compliance. Many States are conducting drug-control planning at increasingly high levels of State government and are featuring drug treatment and prevention as well as criminal justice. On the other hand, 13 States have used the grant to decentralize drug-control planning by distributing funds to localities upon the submission of local drug-control strategies. This impedes the creation of comprehensive plans at the State level. Principal recommendations are to maintain the program's strategy requirement, clarify the goals of the strategy requirement, modify some regulations that govern strategic planning, and improve the Bureau of Justice Assistance's information management and reporting capabilities. Data tables, appended questionnaire, and a 94-item bibliography