THE CALIFORNIA PROGRAM, WHICH BEGAN IN JULY 1966, HAD ONE UNIQUE FEATURE: PAYMENTS TO THE COUNTIES WERE GEARED WHOLLY TO REDUCING COMMITMENTS - $4000 FOR EACH REDUCTION ACHIEVED. THIS VOLUME, THIRD IN A SIX-PART EVALUATION REPORT, EXAMINES WHETHER PROBATION SUBSIDY ACTUALLY ACCOMPLISHED ITS GOAL OF SAVING THE STATE MONEY, AND IF SO, WHAT FINANCIAL IMPACT THE PROGRAM HAD ON THE COUNTIES. USING THE CAREER COST CONCEPT (THE COST TO THE STATE GOVERNMENT OF CARING FOR A COMMITMENT TO THE STATE INCLUDING INSTITUTIONALIZATION AND PAROLE), IT WAS CONCLUDED THAT EVEN AFTER PAYMENT OF THE PROBATION SUBSIDY THE STATE SAVED OVER $60 MILLION IN THE FIRST SIX PROGRAM YEARS. HOWEVER, CASES NOT COMMITTED TO THE STATE RESULTED IN AN ADDITIONAL $3 MILLION PER YEAR IN EXPENSES TO THE COUNTIES OVER AND ABOVE THAT COVERED BY SUBSIDIES. THE LARGEST OF THESE COSTS WAS DUE TO INCREASED JAIL INCARCERATION FOR ADULT OFFENDERS. OVERALL, THE SAVINGS TO THE STATE GOVERNMENT FAR EXCEEDED THE ADDITIONAL COSTS TO COUNTY GOVERNMENT AND TAXPAYERS WERE SAVED ABOUT $6 MILLION PER YEAR IN THE FIRST SIX PROGRAM YEARS. FOR THE OTHER VOLUMES IN THIS REPORT, SEE NCJ-035074-75 AND 77-78 AND NCJ-036490-91.