THIS STUDY IS BASED ON REPORTS, LEGISLATION, AND STATISTICS SUPPLIED BY STATE OFFICIALS TO THE STAFF OF THE STATES CRIMINAL JUSTICE INFORMATION AND ASSISTANCE PROJECT OF THE COUNCIL OF STATE GOVERNMENTS. A TELEPHONE SURVEY WAS ALSO UTILIZED TO GAIN INFORMATION. THE REPORT FOCUSES ONLY ON PROGRAMS INVOLVING DIRECT STATE-TO-LOCAL GOVERNMENT TRANSFER OF DOLLARS. NOT INCLUDED WAS STATE MONEY IN THE FORM OF MATCHING FUNDS TO LOCAL GOVERNMENTS FOR FEDERAL GRANTS AND STATE SERVICES PROVIDED DIRECTLY TO LOCAL GOVERNMENT IN LIEU OF CASH. THE REPORT IS DIVIDED INTO TWO PARTS. THE FIRST PROVIDES A NARRATIVE OVERVIEW OF STATE FINANCIAL SUBSIDIES TO LOCAL CORRECTIONS, AND INCLUDED INFORMATION ON THE NUMBER OF PROGRAMS, FUNDING LEVELS, TYPES OF SERVICES SUBSIDIZED, AND FACTORS APPLIED IN DETERMINING SUBSIDY ALLOCATIONS. THE SECOND SECTION PROVIDES A SUMMARY OF THE MAJOR FEATURES OF 41 INDIVIDUAL PROGRAMS IN 23 STATES.