Property and violent crime rates, including crimes committed with firearms, are declining while police clearance rates are rising. The court system has improved its ability to keep up with increasing criminal caseloads. Drug courts have emerged as an innovation that improves court efficiency while lowering recidivism rates. And disproportionate imposition of the death penalty against minorities is declining. At the same time, there are important negative trends that need to be addressed. Illicit drug use, a factor heavily associated with crime and other societal costs, is increasing. Arrests for possession of drugs are increasing dramatically, while arrests for sale and manufacture of illicit drugs are decreasing slowly. Despite drops in arrests for violent crimes, correctional populations and costs associated with prisons and jails continue to escalate to new levels. The disproportionate number of arrests and prison sentences for minority groups continues to be a concern. Figures, tables, references, appendixes