The report shows that States spent just over $2.1 billion on alcohol and drug abuse treatment and prevention services. States funded 48 percent of this amount; Federal sources provided 23 percent; local jurisdictions provided 9 percent; and other sources (e.g., private health insurance, court fines, client fees, and assessments for treatment) contributed 20 percent. Approximately 77 percent of the funding went for treatment services; 15 percent for prevention services; and 8 percent for other activities. A total of 6,926 alcohol and/or drug treatment units received funds administered by the State Alcohol and Drug Abuse Agencies in FY 1988. Data are reported on the total alcohol client treatment admissions, broken down by sex and race. Similar data are reported for drug client admissions. Cocaine was reported to be the primary drug of abuse for those entering treatment. The States reported the need for new or expanded treatment services, funding and resource allocation, prevention and treatment services for youth, services specifically related to AIDS and intravenous drug users, and prevention and treatment services for other special populations. Data are presented by State, the District of Columbia, Guam, and Puerto Rico. 24 tables, 3 figures, and appended supplementary information