This study consisted of a comprehensive review of cost and benefits of existing juvenile crime prevention and intervention programs, a consideration of what changes could result from cost-effective and efficient State funding, and a report of the findings and recommendations to the legislative fiscal and policy committees by October 1, 2002. In this report, a context is first provided for the Institute's findings with current background information on long-term trends in juvenile crime rates and public sector spending on the juvenile justice system. This is followed by an examination of how the juvenile justice agencies are organized and funded using data provided from a survey of State and local juvenile justice agencies. Next a summary is done of evidence-based information on "what works," identifying approaches that are cost effective along side those that are not. And finally, specific recommendations are provided on what will lead to the improved use of scarce juvenile justice resources in Washington State. Recommendations include shifting part of State funds for community supervision case loads to research-based interventions that have proven to produce higher returns on taxpayer dollars, and require State-funded treatment programs for juvenile offenders to demonstrate a quality-control process that has been proven by research to be essential to making treatment services effective. Figures showing a decline in juvenile arrest rates in Washington, juvenile justice system spending per youth in Washington, juvenile justice spending's strong link to confinement rates, how community supervision cost per day is driven by caseload size, cost per day of confinement of juveniles in local and State facilities, and what works in juvenile justice are provided. Tables include information on the number of offenders in Washington's juvenile justice system on an average day and total spending for community supervision- and treatment-related services.