MS HB1226

Creates the "Juvenile Offender Performance Incentive Funding Act" to incentivize local juvenile probation departments to reduce recidivism and lower state incarceration costs by sharing savings with counties.

Directs the Division of Youth Services to annually calculate percentage changes in juvenile commitments to state custody by county and the resulting avoided state expenditures.

Requires the legislature to annually appropriate up to 45% of avoided expenditures to responsible counties, beginning in fiscal year 2013, unless there is an increase in felony adjudications.

Allows counties to earn additional bonuses (5% of savings each) for increases in employment or school attendance among supervised juveniles, increases in victim restitution payments, and decreases in substance abuse positive tests.

Mandates that appropriated funds be used for evidence-based practices, risk reduction programs, and grants to victim services organizations, and requires annual reports to state leadership and the public beginning in 2013.