The U.S. Supreme Court will hear oral arguments in April 2013, in the matter of Tarrant Regional Water District v. Herrmann. While the specifics of the case pertain to a dispute between Texas and Oklahoma over water from the Red River, the court’s ruling will be watched closely by the numerous interstate compacts that regulate shared bodies of water. 

The passage of MAP-21, the federal surface transportation authorization bill, by Congress in 2012 provided some certainty for state transportation agencies that had dealt with short-term extensions of the previous bill for nearly three years. Moreover, the legislation included many policy changes they had long sought: the consolidation of federal programs, provisions to accelerate the delivery of transportation projects, an emphasis on performance measurement and an infusion of cash for a popular credit assistance program. But state transportation officials say the implementation of MAP-21 continues to present challenges even as the discussion must now turn to its successor--due in 2014--and the important question of how to fund the federal transportation program going forward.

Historically, community colleges have served as an entry point to higher education for many students, particularly nontraditional older students as well as those from low-income households. Community colleges provide general education courses that often, but not always, are transferable to public four-year colleges and universities. For students who persist, the outcome at community colleges has traditionally been a two-year associate degree. Over the past 20 years, however, the line in the sand separating two- and four-year postsecondary institutions has begun to erode. Twenty states have begun meeting the demand for more bachelor’s degrees by giving community colleges an expanded role and allowing them to offer four-year degrees. 

States are currently grappling with the cleanup of Cold War era, defense waste sites across the country. Leaking underground storage tanks of nuclear waste at the Hanford Nuclear Reservation in February 2013 underscore the  urgency of resolving these long-term challenges in a timely manner before additional risk placed on the public However, Washington’s current fiscal problems and the heightened sensitivity of transporting and storing waste do not lend easy or immediate solutions. 

Almost every state in every region experienced increased poverty since The Great Recession. The only exceptions were North Dakota – where the mining boom has taken the state by storm – and the Southern states of Alabama, Mississippi and Oklahoma, where one might argue poverty couldn’t get much worse. Children continue to experience higher rates of poverty than the general population and seniors over 65 are considerably less likely to be poor. Regionally, the East and Midwest had lower poverty rates that the South and West.

The number of employees in state and local governments has been declining since 2008 and represents the largest contraction of public employment in more than 30 years. The loss of jobs in the public sector would have been much more accelerated had it not been for a marked increase in federal aid—primarily the American Recovery and Reinvestment Act, which helped preserve a significant number of state and local jobs for several years. Those funds are now gone and, while private sector employment has been recovering slowly, many state and local governments continue to cut the number of people they employ.

Many states have exhausted their unemployment trust funds—the funds from which states pay unemployment benefits—due to high unemployment rates and the extended length of time many people have been without work. More than half of states have borrowed from the federal government to cover costs, which may impact future fiscal stability.

State and federal prison populations and imprisonment rates have declined for two straight years, after increasing or remaining stable from 2000 to 2009. From 2010 to 2011, 26 states saw incarcerated populations increase, while 22 states experienced decreases and two remained about the same.