LEAA FUNDS ARE ADMINISTERED THROUGH AN INTERGOVERNMENTAL SYSTEM AT THE FEDERAL, STATE, AND REGIONAL LEVEL. THE BULK OF LEAA FUNDS ARE APPROPRIATED FOR FORMULA GRANTS (61.4 PERCENT OF APPROPRIATIONS IN 1978), AND THE PRACTICAL EFFECT OF THIS GRANT SYSTEM IS SUPPORT OF A LARGE NUMBER OF DIVERSE PROJECTS. FINANCIAL ASSISTANCE PROVIDED BY LEAA IS BASED ON THE ASSUMPTION THAT INFUSION OF MONEY INTO STATE AND LOCAL AGENCIES CAN REDUCE CRIME AND IMPROVE CRIMINAL JUSTICE SYSTEMS. CRITICS ARGUE THAT CRIME IS INFLUENCED BY SOCIAL AND ECONOMIC FACTORS THAT LIE OUTSIDE THE CRIMINAL JUSTICE SYSTEM. LEAA PROGRAM RESULTS ARE ASSESSED IN THREE MAJOR AREAS: CRIME REDUCTION, IMPROVEMENTS IN THE CRIMINAL JUSTICE SYSTEM, AND ADVANCEMENT OF KNOWLEDGE THROUGH RESEARCH AND EVALUATION. IT IS DIFFICULT TO ASSESS RESULTS, BUT THERE IS GENERAL BELIEF AMONG FUND RECIPIENTS THAT LEAA HAS BEEN OF LIMITED EFFECTIVENESS IN COMBATING CRIME. ABOUT 59 PERCENT OF THE PROJECTS WERE INNOVATIVE IF THE CRITERIA INCLUDES GENERALLY ACCEPTED UNDERTAKINGS, BUT ASSESSMENT OF THE ADVANCEMENT OF KNOWLEDGE HAS BEEN NEGATIVE - THERE HAS BEEN LITTLE ACCOMPLISHED AND RESULTS HAVE BEEN OF LOW QUALITY AND LIMITED USEFULNESS. FIVE BUDGETARY OPTIONS ARE PROPOSED INCLUDING CONTINUATION OF THE FUNDING AT ITS CURRENT LEVEL, COMPLETE ELIMINATION OF THE PROGRAM, ELIMINATION OF LEAA BUT CONTINUED FUNDING OF STATE AND LOCAL CRIMINAL JUSTICE PROJECTS OR ALLOCATIONS FOR GENERAL REVENUE SHARING, AND LIMITATION OF LEAA SUPPORT OF THE CRIMINAL JUSTICE SYSTEM TO RESEARCH, STATISTICS, AND EVALUATION. THE APPENDIX CONTAINS HISTORICAL DATA ON LEAA FUNDING. (AUTHOR ABSTRACT MODIFIED--DAG)