The program is attributed to the popularity of the labeling theory, which holds that the criminal justice system stigmatizes and reinforces delinquent behavior and that every effort should be made to limit penetration into the system -- and the program was also prompted by the growth of the youth population in the 1960's. Analysis reveals that only one of the program's four goals was achieved -- the decreased use of State correctional institutions. The most substantial impact occurred in the reduction of commitments to the California Youth Authority. Further, although the legislative goal of more consistent administration of justice was achieved during the early years of the program, substantial differences in commitment rates among counties occurred over time. The program was unsuccessful in increasing citizen protection. California has had a consistently higher crime rate than the United States as a whole. Finally, recidivism rates of offenders under subsidy supervision were compared with those of offenders in regular probation programs and in State correctional programs. No differences in the level of rehabilitative effectiveness were found. However, the program has had numerous unexpected effects, including increases in average length of institutional stay. In 1978, the program was replaced by the County Justice Systems Subvention Program. Seven references are included.