Recommendation highlights adopted by the National Policy Panel are presented to the Nation’s State governments in the effective prevention and treatment of alcohol and drug problems include: (1) leadership--provide personal, continuous leadership for a statewide strategy to prevent alcohol and drug problems; (2) structure--develop a strategy that encompasses all the agencies affected by alcohol and drug problems; (3) resources--States should generate two key resources needed to improve alcohol and drug services: money and skilled practitioners; (4) measurement and accountability--States should hold agencies and contracted providers accountable for meeting identified outcome measures; (5) legislation--States should review and update the legislation that controls their alcohol and drug policies; and (6) State advisory councils should be created or revived with enough staff and authority to hold elected officials accountable for providing needed leadership. The consequences of alcohol misuse and illicit drugs are the single greatest drain on State budgets. State governments have the power to change all of this through leadership, optimal structure, and better use of fiscal and human resources. Strong systems of measurement and accountability will also be needed. The National Policy Panel was convened to address two realities: State governments pay dearly for the Nation’s failure to effectively prevent and treat alcohol and drug problems and they have enormous potential. They have potential because State governments are the primary funders of prevention and treatment services. The panel examined how State governments could be most effective in preventing and treating substance use disorders and problems. The panel heard from experts, clients, providers, government officials, and community leaders. The panel issued this report as a blueprint for States to use as a foundation. 71 notes, 17 references