The Center on Juvenile and Criminal Justice (CJCJ) was commissioned by Sierra Health Foundation to critically examine California's juvenile justice system and consider the potential role of foundations in promoting systemic reform. The information gathered by CJCJ researchers for this report suggests that foundations can perform a key leadership role in juvenile justice by assisting counties in their efforts to develop a broader array of interventions, especially for special-needs youth. The treatment needs of special-needs youth, particularly the mentally ill, are a primary challenge for county juvenile justice systems, especially when it comes to accessing services and funding streams across jurisdictional, institutional and administrative boundaries. Despite the current statewide economic crisis, many counties continue to underutilize resources and funding streams that could diversify their treatment service, bolster resources and improve the quality of care. In addition, the need to develop data gathering and management information systems is present in many California juvenile justice systems. As the Annie E. Casey Foundation has found through its nationwide Juvenile Detention Alternatives Initiative (JDAI), measurable change cannot occur without the consistent gathering of accurate data that informs management and drives policy. (Contains 17 tables and 8 footnotes.)