Total DFY expenditures for rehabilitation services increased 44.5 percent from 1978 to 1980. Major factors accounting for this increase include significantly increased use of secure and noncommunity-based facilities and underuse of community-based facilities. DFY's allocation of a higher proportion of its resources to noncommunity-based facilities does not appear to have a corresponding impact on reducing the risk of recidivism or improving the prospects of success in school and employment. Further, DFY's system of classifying its facilities by 'level' serves no useful purpose (except for secure facilities for youths with prior felonies) either in terms of the degree of risk youths pose to the community during their residence period or in influencing the behavior of youth after their release. Program development has occurred within a management structure where considerable autonomy exists among program units. This results in confusion over program roles and responsibilities, duplication of effort, and conflict in facility management and programs. These problems have in turn had a negative impact on DFY's ability to define the kinds of rehabilitative services provided at facilities of different levels. The appendixes contain a list of interviews and contacts, details on funding and operations, and DFY's response to evaluation findings.