This report provides an update of the costs of alcohol and drug abuse for 1997. The 1997 costs were estimated by multiplying the percent changes in various socioeconomic factors from 1989 to 1997 by the cost estimates. The adverse health and social consequences of substance abuse extensively increased costs to the state. The total economic costs of alcohol and drug abuse in Texas were estimated at $19.3 billion in 1997. More than 60 percent of the costs resulted from lost productivity ($8.1 billion) and premature death ($3.9 billion) caused by substance abuse. On a per capita basis, the 1997 amount translates to $1,001 per man, woman, and child in the state. Cost estimates are presented in charts and tables with discussion. Core costs include cost of treatment, morbidity (lost productivity), and mortality (premature death). Direct cost variables studied include crime, motor vehicle crashes, social welfare administration, and fire destruction; indirect costs include productivity losses due to victimization, incarceration, and criminal careers. Costs due to diseases are related to AIDS, Hepatitis B, and perinatal substance exposure. Methods used, data sources, and adjustment factors are discussed. Comparison costs for 1989, 1994 and 1997 are appended. (Author/EMK)