IN TEXAS, PROBLEM CHILDREN USUALLY ARE SENT TO THE STATE ORPHAN'S HOME FOR REHABILITATION. ONLY 17 PERCENT OF THIS POPULATION IS INSTITUTIONALIZED DUE TO SERIOUS CRIME, BUT MANY WILL BECOME CRIMINALS AFTER ENTERING THE SYSTEM. COMMUNITIES MUST DEVELOP ALTERNATIVES TO HANDLE THESE CHILDREN. SCHOOLS ARE URGED TO BE MORE SYMPATHETIC TO THE NEEDS OF SINGLE PARENT CHILDREN. ALTERNATIVES SUGGESTED FOR STATUS OFFENDERS INCLUDE SMALL GROUP HOMES SIMULATING FAMILY UNITS, DAY CARE PROGRAMS ENABLING THE CHILD TO STAY AT HOME AND ATTEND SCHOOL UNDER SUPERVISION, AND HALFWAY HOUSES. PROPERLY TRAINED POLICE SHOULD DIVERT RATHER THAN ARREST A CHILD WHEN POSSIBLE, AND ALTERNATIVES SUCH AS RESTITUTION SHOULD REPLACE DETENTION. THE SOONEST POSSIBLE INTERVENTION WITH A JUVENILE'S PROBLEM IS RECOMMENDED. (DAG)