The DADEJIM is a computerized informational system developed to simulate and forecast the impact and repercussions that changes in policy, workload, and resources may have on the criminal justice system. For this study, a DADEJIM simulation was conducted to estimate the effect of diverting 3,000 inmates per year (nearly a five- fold increase over 1990 participants) into the House Arrest Program. The study concludes that by diverting eligible inmates into the House Arrest Program, the criminal justice system will free up jail beds, making them available for more serious/high-risk felony offenders. Offenders in the House Arrest Program will pay a weekly "administrative" fee. A simple cost analysis of the program reveals a 5:1 short- term and a 18:1 long-term leverage: $1 million in expenditures up front that results in recurring cost reductions in excess of $5 million and $18 million in both the short-term and long-term respectively. Key variables that will influence the program's effectiveness are proper screening of each potential program candidate and support from correctional administrators, law enforcement administrators, elected officials, judges, prosecutors, and public defenders. 4 tables and 13 figures