A change in mental health policy, known as deinstitutionalization, shifted the locus of care for patients with serious mental illness (SMI) from psychiatric hospitals to community mental health centers. The failed transition to community mental health services led to the increased contact of SMI persons with police due to behavioral problems in the community. The most reliable studies of mental illness among State inmates have found that 15 percent have a SMI. Other studies suggest that SMI is common among parolees and increases the risk of parolee recidivism. Specialized reentry strategies are required for SMI parolees. A discharge plan should have information on an inmate's need for community-based mental health treatment, employment, housing, and financial and social support. Court-mandated drug treatment, using the leverage of the court and correctional systems, increases enrollment and participation in interventions and programs while reducing criminal activity. Effective case management techniques can help SMI parolees access multiple services in an overall treatment plan that integrates and coordinates care across various service domains. A team approach should involve formal agreements or memoranda of understanding with mental health agencies that include cross-training among correctional staff and service providers. Illinois' Thresholds' Prison Aftercare Program (PAP) serves people with SMI. PAP is based on the Assertive Community Treatment (ACT) model, which uses multidisciplinary teams with small, shared caseloads and daily staff meetings to discuss individual clients and coordinate a comprehensive range of services. 55 references