The document was designed to assist State policy makers with comprehensive planning and coordination of resources and services to reduce drug use and crime among offenders by providing an overview of State efforts and Federal resources available to address the problem. It provides information on trends in prison, parole and juvenile correctional populations; implementation of State drug testing sanctions and treatment policies; and Federal funding available for programs focused on substance abuse among offenders. The document highlights the drug testing policies submitted by the States to meet the requirement that each State implement a program of drug testing, sanctions and treatment by September 1, 1998, to be eligible for continued funding under the Violent Offender Incarceration and Truth-in-Sentencing Incentive Grant Program. Figures