One hypothesis tested states that the more money allocated annually per resident for law enforcement within each State, the lower its corresponding annual Index Crime rate. A second hypothesis states that the more money allocated annually per resident for law enforcement within each State, the lower the State's corresponding annual Index of Violent Crime rate. The third hypothesis states that the more money allocated annually per resident for law enforcement within each State, the lower its corresponding annual Index of Property Crime rate. Annual State budgetary allocation per person for police services were correlated with each State's respective official (Uniform Crime Reports) crime rates, beginning with 1975 and continuing to 1992. In addition, regression correlations were drawn between annual crime victimization rates nationally and corresponding national investment in police services. Study findings indicate that the more money allocated annually per person within each State for police services the higher the State's official crime rate. Alternatively, the crime victimization rate significantly decreases. The increase in the number of crimes known to police indicates that more crimes were known by and reported to police when police resources were increased. This in turn had a deterrent effect that reduced the actual number of crimes committed as measured by the number of victimizations. This was true for both property and violent crimes, although less so for violent crimes. Policy implications and recommendations for future research are considered. 1 figure, 3 tables, and 35 references