Funding for adjudicated youth typically comes from the state’s department of juvenile justice, but is often augmented by revenues from federal and state programs such as special education, Title 1 (compensatory education) funds, and Medicaid.

After sentencing, placement decisions for adjudicated youth may be made by the state or local juvenile justice agency. If the sentencing judge recommends a particular program, the agency will generally try to be accommodating. For private placements, the agency negotiates rates with the provider or pays an amount based on government cost formulas. In 1994, the average daily cost of incarcerating a juvenile was $107.23, according to the Criminal Justice Institute.84