Ok, so apparently I failed the polygraph for my local department.
Not sure why -- they didn't tell me why but did say that I can't
reapply ever again that that department.

I was very truthful, but a couple of questions made me nervous
so that could be why I got rejected. Or maybe the fact that I never
paid taxes so they might think I am immature (I only made less
than $8000 per year ever since I started working and I made a mistake
of not paying taxes because I read somewhere that you only have to
if you make over $9000).

Also, I made some predjudicial remarks before to people of other races,
which I regret. I am not a racist person. Maybe this was an issue.
I have never done drugs, have no tickets at all, only one undisclosed
crime (stole 3 DVDs from best buy as a juvenile 9 years ago, never
got caught). I never attempted suicide, never been fired from a job,
dont have any debts, etc.

Anyways, I am really bummed out about this. I really thought I was
a very good candidate.
My question is, do you think there is any point in applying at other
departments?
I mean, I know that as far as hiring goes, departments do communicate
with each other. The fact that I can never apply with this department
bothers me because if other departments find out about the fact that
I failed polygraph, then they might not even consider me.
So do you think I should try or is there a very slim or no chance in
getting in?
I am really sad that I spent so much time on this just to get rejected.
It's a bummer.

How old are you? I'd probably wait a few years. Continue to improve yourself in the meantime.

I am 24. I havent had a good-paying full time job yet because
I have been focusing on schoolwork in the past few years;
besides, the market is tough so its hard to find a job anyways.
I do have a job lined up but in engineering field that pays more
than police work, but LEO position would be my dream.

Take the engineering job. Continue to improve your resume at the same time. Be patient. The job market is indeed tough!

Getting police officer jobs is very difficult in many areas right now. Don't give up.

Well, I found out why I didn't make it to the next stage.
First off, I found out that I was truthful on the polygraph.
The reasons that I didn't make it:
1) I left 2 jobs in the past without notice.
2) I spent some time around people in the past who do
drugs (weed).
3) A friend of mine grows weed in his house.
4) I downloaded a book 3 years ago on how to make
meth.

I do understand that I am going up against people
who never did those things, but this is pretty
ridiculous. I mean, I never manufactured drugs or
used any type of drug. All those things are very minor
in my opinion.

Maybe a smaller agency will hire me.

That can do it! Give it time, hope the economy improves, and improve your resume. Try again later with other departments.

There are many people with circumstances similar to yours. Some will eventually get hired, and some will not ever become police officers. All you can do is do what you can and keep trying.