The Department of Correction is responsible for the confinement and noninstitutional supervision and treatment of offenders -- both juvenile and adult -- as are ordered by the courts. The department is composed of a central office, an adult bureau, and a juvenile bureau. The major accomplishments of the central office during the year were (1) activation of zero-based budgeting, (2) obtaining and implementing a grant to update inmate records, and (3) obtaining and implementing a grant for Comprehensive Employability Assessment and Training. The adult bureau opened a 45-bed facility at Sussex Correctional Institution, consolidated inmate treatment under institutional services, opened a 118-bed facility on the grounds of the Delaware Correctional Center, opened the prison industries building at Delaware Correctional Center and commenced furniture refinishing, initiated a resident 'Green Tree Program' for drug and substance abuse, obtained and implemented a furlough supervision grant, obtained and implemented a classification grant, broke ground for a 64-bed maximum security facility, and maintained inmate population below court-mandated levels 8 out of 12 months. The juvenile bureau hosted the Middle Atlantic Conference on Corrections, instituted counseling service at Bridge House, initiated a new treatment approach at Woods Haven Kruse, and reorganized the client-study team under Community-Based Services. The most pressing problem faced by the department is overcrowding. The status of long-range projects is also discussed. An organizational chart is included. (Author abstract modified)