The investigation of constrained systems is limited to first-class par
ametrized systems, where the definition of time evolution and observab
les is not trivial, and to finite-dimensional systems in order that te
chnicalities do not obscure the conceptual framework. The existence of
reasonable true, or physical, degrees of freedom is rigorously define
d and called local reducibility. A proof is given that any locally red
ucible system admits a complete set of perennials. For locally reducib
le systems, the most general construction of time evolution in the Sch
rodinger and Heisenberg form that uses only the geometry of the phase
space is described. The time shifts are not required to be symmetries.
A relation between perennials and observables of the Schrodinger or H
eisenberg type results: such observables can be identified with certai
n classes of perennials and the structure of the classes depends on th
e time evolution. The time evolution between two non-global transversa
l surfaces is studied. The problem is posed and solved within the fram
ework of ordinary quantum mechanics. The resulting non-unitarity is di
fferent from that known in field theory (Hawking effect): state norms
need not be preserved so that the system can be lost during this kind
of evolution.