THE FIRST SECTION OF THIS HEARING REPORT CONTAINS TESTIMONY BY DIRECTORS OF YOUTH SERVICE BUREAUS, JUVENILE COURT JUDGES, ATTORNEYS CONNECTED WITH JUVENILE JUSTICE REFORM PROJECTS, UNIVERSITY PROFESSORS, AND DIRECTORS OF CITIZENS' COMMITTEES ON CRIME AND JUSTICE. QUOTED STATISTICS SHOW THAT JUVENILE CRIME IS INCREASING, THAT THE MAJORITY OF OFFENDERS ARRESTED FOR THEFT AND VANDALISM ARE UNDER THE AGE OF 17, AND THAT MANY APPROACHES CURRENTLY ARE BEING TRIED TO STEM THIS RISING TIDE. THE COMMON THEME IS THE NEED FOR STRONG PROBATION SERVICE AND MORE COMMUNITY-BASED CORRECTIONAL FACILITIES. SEVERAL WITNESSES OPPOSED A NEW CENTRAL STATE JUVENILE TRAINING SCHOOL WHICH HAD BEEN PROPOSED FOR MARYLAND. THE APPENDED MATERIALS CONTAIN A REPORT FROM THE GOVERNOR'S COMMISSION ON JUVENILE JUSTICE, WHICH REVIEWS THE FOLLOWING OUTSTANDING COMMUNITY-BASED PROGRAMS FOR JUVENILES: THE PROVIDENCE, R.I., EDUCATION CENTER; THE PHILADELHIA, PA., NEIGHBORHOOD YOUTH RESOURCES CENTER AND THE COMMUNITY ARBITRATION PROGRAM, ANNAPOLIS, MD. EACH SECTION OF REPORT IS A 'HOW TO' MANUAL WHICH DESCRIBES OPERATION DESIGN AND RESOURCES NEEDED TO IMPLEMENT A SIMILAR PROGRAM. AN ADDITIONAL SECTION EVALUATES THE COMMUNITY ARBITRATION PROGRAM, A SCREENING AND DIVERSION PROJECT WHICH ALSO PROVIDES FEEDBACK TO POLICE AND VICTIMS. THE COMMITTEE ON VANDALISM, COLUMBIA, MD., IS REPRESENTED BY A REPORT DETAILING THE HIGH COST OF VANDALISM IN AN AFFLUENT SUBURBAN COMMUNITY. THE NEED FOR STRONG SCHOOL AND COMMUNITY ACTION IS STRESSED. LETTERS, NEWSPAPER CLIPPINGS, AND RADIO AND TELEVISION REP0RTS ARE ALSO APPENDED. (GLR)