CITIES OVER 50,000 TOGETHER ACCOUNT FOR ABOUT 35 PERCENT OF THE UNITED STATES POPULATION, BUT HAVE OVER 60 PERCENT OF MINORITY YOUTH EMPLOYMENT, 52 PERCENT OF ALL FEDERAL BUREAU OF INVESTIGATION INDEX CRIMES, AND 51 PERCENT OF ALL ILLEGITIMATE BIRTHS. STATISTICS SHOW THAT WHILE THE LABOR MARKET FOR WHITE TEENAGERS HAS IMPROVED FROM 1964 TO 1978, THE LABOR MARKET FOR BLACKS HAS DECLINED, PARTICULARLY FOR BLACK MALES. BLACKS BETWEEN 20 AND 24 YEARS-OLD HAVE UNEMPLOYMENT RATES OF 20 PERCENT OR MORE COMPARED TO 10 PERCENT FOR YOUNG WHITE ADULTS. MINORITIES TEND TO LIVE IN CITIES, AND MINORITY MALES HISTORICALLY HAVE HIGHER UNEMPLOYMENT RATES IN CITIES THAN IN OTHER AREAS OF THE COUNTRY. TEENAGE UNEMPLOYMENT OFTEN RESULTS IN AN UNFOCUSED LIFE WHICH MAY LEAD YOUNG MEN TO CRIME AND YOUNG WOMEN TO ILLEGITIMATE PREGNANCIES. SUBURBAN CRIME HAS INCREASED IN RECENT YEARS, BUT SUBURBAN CRIME STATISTICS BEGAN FROM A RELATIVELY LOW BASE AND SO STILL LIE BELOW THE URBAN CRIME RATES. ALTHOUGH THE TOTAL RATE OF ILLEGITIMACY HAS NOT CHANGED BETWEEN 1960 AND 1975, THE RATE FOR TEENAGERS HAS RISEN WHILE THAT FOR OLDER WOMEN HAS DECLINED. THE CURRENT CETA FORMULAS DO NOT FAVOR CITIES, BUT ALLOCATE FUNDS ACCORDING TO THE NUMBER OF UNEMPLOYED PERSONS WITHIN A PRIME SPONSOR AREA, THE NUMBER OF PERSONS UNEMPLOYED IN EXCESS OF A 4.5-UNEMPLOYMENT RATE, THE NUMBER OF PERSONS IN FAMILIES WITH ANNUAL INCOMES BELOW $12,000, AND THE PRIME SPONSOR'S SHARE OF PROGRAM FUNDS IN PREVIOUS YEARS. NEW DISTRIBUTION FORMULAS WOULD REQUIRE THE COLLECTION OF A NEW DATA SERIES, A COSTLY AND DIFFICULT PROCESS. PROVIDING A BONUS IN THE FORMULA FOR PRIME SPONSORS WHO SERVICE CENTRAL CITIES OF THE STANDARD METROPOLITAN STATISTICAL AREAS MIGHT BE THE SIMPLEST WAY TO TARGET FUNDS FOR YOUTH PROBLEMS. TABLES PROVIDE COMPARATIVE DATA ON LABOR FORCE PARTICIPATION, CRIME RATES, AND ILLEGITIMATE BIRTHS AMONG YOUTHS. FOOTNOTES ARE INCLUDED. (MJM)