One of the law's goals was to promote economy in the delivery of correctional services through grants to help counties develop, implement, and operate community-based corrections programs. The law assumed that a decentralized approach, in which correctional planning and service delivery would be concentrated at the local level, would be more economical than a more centralized system. Data were collected on three major categories of expenditures: overhead costs, including planning and administration, research and information systems, and training; local programming costs, including probation and parole, adult and juvenile programs, victim services, and other programs; and the costs of incarceration and juvenile facilities. The costs under the Community Corrections Act were found to be higher than the costs of continuing previous policies in most areas. Every component of overhead costs rose. Program expenditures per member of the target population also increased in all geographic areas except two. Jail and workhouse expenditures also rose in every geographic area. These increases were not offset by the State institutional costs which were avoided under the law. The total costs exceeded the continuation costs by 13 to 16 percent. Data tables and 13 references are included.