Cocaine has surpassed marijuana as the drug of choice in Maryland. Heroin abuse also seems to be on the increase. PCP, however, has steadily declined in use since 1987. Intensive anti- drug law enforcement has had the effect of reducing other crime, such as theft and assault, whether or not the law enforcement activities have any effect on the availability of drugs. The report estimates that approximately half a million Marylanders, or 11 percent of the population, use drugs (not including alcohol) regularly. Drug trafficking groups have been formed along ethnic and social lines; for example, crack cocaine is controlled by Jamaicans; Nigerians are involved in the wholesale trafficking of heroin. No county in the State is free of drug trafficking and abuse, and drug-related homicides have increased steadily since 1985. This report forecasts that the crack epidemic will continue to escalate; heroin abuse will spread out of Baltimore to other parts of the State; and LSD will make a comeback but will not reach the proportions of the 1960's and 1970's. The State budget will continue to be pressed due to the increased effectiveness of police in bringing more people into the criminal justice system. There will also be increased expenditures for health, education, and treatment, including the costs of educating drug-affected children. Recommendations pertain to the collection and analysis of intelligence information, progress toward a standard format for reporting law enforcement information, and initiatives by the Maryland State Police in developing cooperative drug programs with the various drug-enforcement agencies in the State. 31 tables