With an increasing number of parolees returning to society each year, intermediate sanctions that provide for community safety, facilitate reentry, and reduce reincarceration rates of parolees have the potential for being a cost effective method of community corrections. Unfortunately, there is limited experimental research on their efficacy. The proposed study will help to remedy this deficiency by employing random assignment of parolees who are risk of being reincarcerated to compare the effectiveness of Day Reporting Centers (DRCs) versus the more traditional response to parolees who are not adjusting well--intensive supervision parole. Only one prior study of DRCs has examined their effectiveness with parolees; and none have employed random assignment. The grantee will also conduct a cost benefit analysis to compare DRC, intensive supervision, and continued incarceration. Outcome measures will include: successful program completion, positive drug tests, rearrests, severity of new offense, and employment. It is estimated that a total of 108-130 subjects will be recruited for the study during the one year enrollment period. The grantee will monitor subjects for 18 months post completion of DRC or intensive supervision.