The council has announced plans to hold an inter-agency summit in the spring to thrash out the best way to deal with the crisis.
The substance misuse report will look at the human and financial cost of the misuse of drugs and alcohol.
The report's findings:
4,500 children have one or both parents suffering from a drug problem
170 children are on the child protection register largely because a parent has a drink problem
102 children are on the child protection register largely because a parent has other substance misuse problems
The number of women in Staffordshire dying from chronic liver disease is above the national and regional average.
Council leader John Taylor (Lab) said: “The report's findings confirm the destructive effect that alcohol and drug abuse is having on crime, health, vulnerable adults, children and their families, not to mention the local economy.”