THE INTRODUCTORY SECTION OF THIS REPORT NOTES THAT 28 PERCENT OF THE YOUTHS SENT TO TENNESSEE CORRECTIONAL INSTITUTIONS SCORE IN THE BORDERLINE RANGE FOR MENTAL RETARDATION ON INTELLIGENCE TESTS. NINE PERCENT SCORE BELOW THAT. THIS PROGRAM WAS DESIGNED TO OFFER A SAFE AND EFFECTIVE WAY OF REHABILITATING THESE MENTALLY RETARDED JUVENILE OFFENDERS WHILE THEY LIVE IN THE COMMUNITY. THE PROGRAM OPERATES ON A DAILY BASIS. ENHANCEMENT OF THE BOYS' SELF IMAGE THROUGH REINFORCEMENT OF ALL IMPROVEMENTS IN BEHAVIOR IS THE MAJOR GOAL OF THE PROJECT. A TOKEN ECONOMY SYSTEM USING THREE FORMS OF POSITIVE REINFORCEMENT - SOCIAL APPROVAL, IMMEDIATE MONETARY REINFORCEMENT, AND A POINT SYSTEM - IS UTILIZED. CASE EXAMPLES OF PROJECT SUCCESSES AND FAILURES, AND A REVIEW OF THE YOUTHS' COMMENTS ON THE PROGRAM ARE INCLUDED IN THIS REPORT. THE APPENDED MATERIALS INCLUDE CRITIQUES AND COMMENTS FROM CITIZENS AND PARTICIPANTS, AND PROPOSED ANNUAL BUDGETS FOR THE SERVICE AND RECREATION COMPONENTS OF OUR HOUSE.