SB 81 challenges counties to develop local alternatives for youth who are no longer eligible for commitment to the State's Division of Juvenile Justice (DJJ) and to make comprehensive system improvements. In addressing these challenges, counties should adhere to basic criteria for successful juvenile justice development. This includes using local data to support the development of new programs and services, as well as tracking outcomes for new strategies. In addition, counties must institute programs and services whose principles are consistent with research on effective and cost-efficient juvenile justice practices. The State's role in these county efforts is to provide structure and oversight for the process. Unfortunately, SB 81 fails to provide for adequate mechanisms for State funding and technical assistance that could help counties in implementing the provisions of SB 81. Counties' reported application of the 2007-2008 Youthful Offender Block Grant (YOBG) program indicates a commitment to improve treatment and basic services intended to meet the diverse needs of youth and their families. Mental health and substance abuse service improvements are addressed in counties' reported expenditures, as are improvements in aftercare services, staff training, evidence-based programming, and risk and needs assessment tools. There are some troubling findings, however, regarding expenditures and planned reforms in the counties. Perhaps the most inadequate area of SB 81 implementation to date has been county accommodations for DJJ youth who are returned to local jurisdictions in accordance with SB 81. Thirteen recommendations are offered. Appended provisions of SB 81, 2007-2008 YOBG expenditures, and reported regional plans