This document contains testimony and prepared statements from assistant secretaries in the Department of Education and the Department of Health and Human Services; directors from the Department of Health and Human Services; the general director of Beth Israel Medical Center; the president of Phoenix House Foundation, Inc., a drug-free treatment program with services in New York and California; the executive director of the Alcohol and Drug Problems Association of North America; representatives from the New Jersey State Department of Health, police departments, schools, and the State Department of Education. Activities of the Department of Health and Human Services and the Department of Education are reviewed to examine their responses to the concerns of state and local treatment and prevention professionals. Reports are included on the current situation from treatment and prevention experts. The role of methadone maintenance in treating drug addiction is examined, and drug-free treatment alternatives are explored. Testimony is also given from a panel of state and local representatives from New Jersey involved in the statewide community organization program (SCOP), a community-based drug abuse prevention approach which has successfully increased school attendance, encouraged youth volunteer services, and reduced vandalism and other disruptive behaviors associated with drug abuse. (NRB)