In order to provide long-range planning, the Commission staff has been restructured, with a focus on staff having the analytical skills required to help the Governor and the legislature make wise investments in the criminal justice system. This has included the use of an economist to examine the effects of the State’s incarceration policies on crime in Oregon. The cost-benefit report developed and presented in the current document is a first step in the type of evaluation required for the State’s long-range planning. In the future, the cost-effectiveness of sentencing and corrections mechanisms and programs other than incarceration can be compared and evaluated in order to provide direction for long-range cost-effective planning. Providing the Governor and Legislature with a systemwide portfolio of programs designed to prevent and reduce crime, along with data on their cost-effectiveness is the Commission’s next step in its efforts to develop and support long-range criminal justice planning. In terms of specific work already underway in implementing improved criminal justice efforts, the Governor’s Meth Task Force’s report, which is included in the current report, shows the significant reduction in meth labs in Oregon due to restrictions imposed on the precursor pseudo-ephedrine. Another report included in the current document presents data and information on the progress of the drug court grant program over the last year and a half. 7 tables; 23 figures; and appended tables on taxpayer and victimization costs of crime, the estimated probability of arrest and conviction, felony sentences in 2005, and crime distribution from the Uniform Crime Reporting