Description: In 2011, the state enacted several bills to enact a wide-ranging “realignment,” shifting several state programs and a commensurate level of revenues to local governments. Perhaps the most significant programmatic change implemented as part of the 2011 realignment was realigning to county governments the responsibility for managing and supervising certain felon offenders who previously had been eligible for state prison and parole. This report provides an update on the status of realignment, reviews changes proposed by the Governor, and makes several recommendations designed to promote the long-term success of realignment, such as creating a reserve fund for revenue growth as well as designing an ongoing allocation formula that is responsive to future demographic changes.