Data indicate that operating expenses generally accounted for almost the entire police budget -- 97.5 percent in 1961, 99.8 percent in 1971, and 97.8 percent in 1981. Capital expenditures varied considerably, from 2 percent of gross annual expenditures in 196l to a high of 37 percent in 1979, to .4 percent in 1981. Over the 20-year period, the cost of police services rose at an average annual rate of 12.2 percent, but the rate of expenditures increased somewhat faster in the 1970's -- 12.6 percent per annum for the period 1971 to 1981, or 228 percent overall -- as opposed to an average increment of 11.9 percent during the period 1961 to 1971, or 190 percent overall. Increases in personnel are shown to account for a major portion of the increase in cost; between 1961 and 1981, the number of police personnel increased by 87.4 percent. Salary costs are also found to be a significant factor in overall cost increases, as are salary benefits, including pay for overtime, statutory holidays and vacations, terminal allowances, and longevity bonuses. These increases have essentially given the police parity with the highest paid blue-collar workers. In the future, the police may face a relative decline in the amount of resources available to carry out the law enforcement function. Five tables are included.