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stand out as having considerably more funding from patient fees/private insurance and Medicare/Medicaid (i.e., patient-generated funds), and only about half as much funding (on average) from other federal government sources compared to the other program types.  In addition, local government contributions to revenue were much higher for the Target Cities programs, which seems logical given their geographically targeted focus in cities such as Philadelphia, Baltimore, Milwaukee, Chicago, Atlanta, Los Angeles, and Seattle.  Simple tests for correlation confirmed that the proportion of revenue received from the federal government was significantly and negatively related to the proportion of revenue received from local governments (r= -.434, p < 0.0001), state governments (r= -.571, p < 0.0001), and interest/donations (r= -.225, p < 0.0001).  There was only one moderate, statistically significant correlation between the source of revenue and revenue per client, showing a positive relationship between revenue from interest and donations and SDU revenue per client (r=.120, p=0.0414).

What is the significance of sources of revenue for SDUs?   First, the findings above suggest that federal funding for substance abuse treatment may be a substitute for rather than a complement to other government and private sources of revenue.  This is in contrast to some matching grant programs that currently fund other social welfare services such as Temporary Assistance to Needy Families.  Without additional information, it is not feasible to fully explore the implications of these alternative sources of revenue for financial and program management, but future multilevel, multivariate analyses might be able to separate out some effects of the choices program managers make in response to differing financial incentives or constraints.  For example, one might consider the regulatory or administrative burden placed on SDUs by their funding sources/organizations.  At least one study (Attewell and Gerstein, 1979: 311) has investigated managerial responses at the program level to government policy and institutional

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