Local control with State-wide coordination of alternatices to incarceration is achieved in New York State under a State Division for that purpose.
Alternatives to Incarceration can save taxpayer moneys, reduce recidivism, and, most important, restore lives. The inspiration and guidance for the creative application of restorative justice principles is thus managed.
A good look at the methods used in the USA can be found in an interview with Bob Macccarone, Director of the New York State Division of Probation and Correctional Alternatives, at http://criminaljustice.state.ny.us/pio/cjforum/transcripts/prob-corr-alts-podcast-transcript.html
In New York State, funds are allocated to Counties through this State Division. Regulations regarding New York State Grants to County Probation Services, for such purposes, can be found at http://www.dpca.state.ny.us/345.htm