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The 2001 Washington State Legislature directed the Institute to conduct a longitudinal study on the outcomes of state-funded mental health clients to identify best practices in the provision of public mental health services. This report contains the two-year follow-up of public mental health clients selected from the baseline year of 2002. Two sets of analyses are performed. The first examines differences in client profiles between all baseline clients and those who continued to receive public mental health services in 2004. The second examines outcomes in 2004 of all adult clients from the baseline and client characteristics associated with variation in outcomes. Outcomes examined include utilization of public mental health services, utilization of other public medical services, employment, and criminal justice involvement.