The year included significant events in the areas of program development, funding, and organizational changes. Most notable was the project's ability to continue without LEAA funding. The project relied on funds from participating cities, augmented by special purpose grants, largely under the Comprehensive Employment Training Act (CETA) program. In January 1978, PVJDP received a CETA grant for the development of four businesses designed to use juvenile diversion clients as employees and to provide them with career training. Each juvenile client works part-time in one of the four businesses of urban farming, recycling, motorcycle repair, and woodshop. In addition, the youths attend career training classes, where they are given general information relating to jobs and employment. The 864 referrals represented the largest number of clients served in any of the 4 project years. Data on 147 clients who were law enforcement referrals to PVJDP between July 1977 and January 1978 showed that at least 24 had recidivistic police contacts during the 6-month followup period. Since these records are incomplete, the best estimate is that recidivism was between 16 and 25 percent. The impacts on the juvenile arrest rates and the juvenile justice system are also discussed. Clients' referral reasons, offense histories, and personal and family characteristics are also reported. Policy recommendations are offered in the areas of costs, program emphasis, forms, and recordkeeping.