Based on laws dating from 1901, probation in New York State today remains a local function continuing under State supervision. The State Division of Probation reimburses 41.5 percent of local probation costs. Since the executive structure reorganization in the 1970'a, administrative responsibility for probation has been clarified through its placement in the executive branches of government. The State director of probation clearly has responsibility for general supervision of probation throughout the State. Restitution may be ordered by the court as a condition of probation, suspended judgment, or adjournment in contemplation of dismissal. Restitution was used sparingly until the Division of Probation's restitution demonstration program which began in 1979. The demonstration has been established in three sites, which vary in demographic characteristics. The Division of Probation has the main responsibility for the project's administration and management. Implementation issues requiring resolution have concerned contractual agreements, projected client population, work placement for juveniles, and third party payments. Now in its 19th month, the demonstration program has successfully achieved its goal of reducing placements and increasing the use of restitution. Public knowledge and confidence in the program have increased. Preliminary data indicate a low recidivism rate. The Probation Division hopes to institutionalize the program and replicate it throughout the State. Footnotes which include references are included.