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, SECOND IN A SIX-PART EVALUATION REPORT, INVESTIGATES THE EXTENT TO AND THE METHODS BY WHICH THE PROGRAM GOALS OF COMMITMENT REDUCTION AND INTENSIVE SUPERVISION WERE ACCOMPLISHED, AS WELL AS THE ORGANIZATIONAL CONSEQUENCES OF THE PROGRAM FOR LOCAL CORRECTIONAL AGENCIES. DISCUSSED IN SOME DETAIL ARE THE DEVELOPMENT OF SYSTEMS FOR ADMINISTRATIVE REVIEW OF CASE DECISIONS, REASONS WHY COUNTY PROBATION DEPARTMENTS HAD DIFFICULTY LOWERING THE RATE OF ADULT COMMITMENTS, AND PROBLEMS SURROUNDING THE SELECTION AND MANAGEMENT OF SUBSIDY CASELOADS, SUCH AS THE FORMATION OF ELITE CORPS OF PROBATION OFFICERS TO DEAL WITH SUBSIDY CASES AND THE LACK OF SPECIFICS ABOUT THE STATUS OF SPECIAL SUPERVISION PROGRAMS. ALSO CONSIDERED ARE THE PROCEDURES USED TO SELECT PERSONNEL FOR THE SUBSIDY PROGRAMS AND THE EXTENT TO WHICH THESE PROGRAMS HELPED PARTICIPATING DEPARTMENTS INSTITUTE IMPROVEMENTS (TRAINING, INNOVATION) IN PROBATION SERVICES. A CASE STUDY OF THE OPERATION OF THE PROBATION SUBSIDY PROGRAM IN LOS ANGELES COUNTY, WHICH UNLIKE OTHER COUNTIES DID ATTEMPT VARIOUS INNOVATIVE ORGANIZATIONAL APPROACHES TO THE IMPLEMENTATION OF SUBSIDY CONCEPTS, IS INCLUDED. FOR THE OTHER VOLUMES IN THIS REPORT, SEE NCJ-035074, 76-77 AND NCJ-036490-91.