The report identifies several problems in California's substance abuse treatment system, including lengthy waiting lists in a number of counties, no statewide plan for addressing the demand for treatment services and a need in particular for treatment services aimed at adolescents. The 1999-2000 Budget Act appropriated 354 million dollars to the State Department of Alcohol and Drug Programs. The Department estimated that an additional $330 million would be needed annually to fully fund the system--that is, to provide treatment to all persons who would seek it if such services were available. The report recommends that the Department submit a plan to address existing county waiting lists for substance abuse treatment and that the Legislature consider the plan in the 2000-01 budget process. It further recommends that the Department develop a long-term plan to address the potential increase in the demand for substance abuse treatment if more services become available. The plan should include consideration of provider capacity, ways to develop additional capacity if needed, identification of optimal modes of treatment for both adults and adolescents and State-level efforts to coordinate service delivery among public providers, including the counties, the State prison system and the California Youth Authority. Figures