SEVERAL SPECIFIC ALTERNATIVES TO INSTITUTIONALIZATION ARE EXAMINED INCLUDING THE CALIFORNIA YOUTH AUTHORITY DEPARTMENT'S COMMUNITY TREATMENT PROJECT (CTP), GUIDED GROUP INTERACTION PROJECTS, AND DIFFERENTIAL TREATMENT UNITS. HOWEVER, THE MOST RIGOROUS RESEARCH DESIGNS GENERALLY HAVE FOUND THAT OFFENDERS ELIGIBLE FOR SUPERVISION IN THE COMMUNITY IN LIEU OF INCARCERATION DO AS WELL IN THE COMMUNITY AS THEY DO IN PRISON OR TRAINING SCHOOL. WHEN INTERVENING VARIABLES ARE CONTROLLED, RECIDIVISM RATES USUALLY APPEAR TO BE ABOUT THE SAME. UNTIL THESE ALTERNATIVES TO INSTITUTIONALIZATION ARE DEMONSTRATED TO BE MORE EFFECTIVE THAN IMPRISONMENT IN PREVENTING FURTHER CRIME, AN IMPORTANT RATIONALE FOR THE USE OF COMMUNITY PROGRAMS WILL BE THAT CORRECTIONAL COSTS CAN BE REDUCED CONSIDERABLY BY HANDLING IN THE COMMUNITY SETTING A LARGE NUMBER OF THOSE OFFENDERS NORMALLY INSTITUTIONALIZED. (AUTHOR ABSTRACT MODIFIED)