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State budget shortfalls are expected to balloon to $82 billion by 2004. What avenues are available for governors to bring about fiscal solvency in the states? This article assesses their plans to navigate this continuing fiscal storm. The author then reviews the state government revenue situation and draws conclusions based on the content of governors’ 2003 state of the state addresses.

Results-based decision-making in state government has gained considerable interest as part of government accountability. Use of outcome information by elected officials and managers in budgeting and improving services to citizens still falls far short of its potential. This article provides suggestions for more effective collection and use of performance information.

Most states have initiated various cutback-management strategies in the past two years to deal with budget shortfalls and projected deficits. However, restructuring state agencies has emerged as the most popular approach to the current financial crisis. State agencies are likely to continue to privatize some of their programs and services as a cost-saving tool, although the rate of savings has been moderate. A growing number of states are using performance measures in their budgeting, although they are not widely used as an efficiency tool in state agencies.

This article reviews the most significant emerging trends in economic development and their ramifications for the states. It focuses on the role of information technology, the increasing regionalization of economic development and the new financing tools available to economic developers and how these tools have helped change the states’ development priorities.

Tomorrow’s energy policy should look beyond the Middle East to include all of North America. To achieve certainty in an era of volatility and to reach the wealth of untapped energy in the Americas will require new partnerships with regional, national and even continental planning. We need a North-South energy policy — an Energy Policy for the Americas.

Teaching quality seems likely to remain a state concern for the long-term, even though policymakers will come to see, if they haven't already, that it isn't a magic bullet. The impetus for that continued focus comes not only from the states’ pressing needs for well-qualified teachers, but also from the federal government.

With continued threats of terrorism facing the country, states are struggling to maintain basic public safety programs while taking on the additional responsibility — and costs — of homeland security. The year 2002 produced a National Strategy for Homeland Security and legislation creating a new federal Department of Homeland Security, but little funding has been provided to support enhanced preparedness efforts by states. It will be important for states to think and plan regionally, utilize mutual aid and leverage limited resources to meet the challenge of making communities safe from terrorism and natural disasters.

Medicaid stands out as the program hit hardest by the economic downturn and rising health care costs. Governors, legislative leaders and Medicaid officials around the country see the program’s current cost trajectory as unsustainable in both the short-term and the long-term. Yet, states have faced similar situations before. As in previous eras of runaway cost growth, state leaders are marvelously adept at developing coping mechanisms. Emerging trends in state responses to the Medicaid crisis may indicate the future direction of Medicaid policy.

This article traces past and current trends in parole and probation. Lessons from history are framed in the context of implications for future trends in the 50 states. It discusses parole and probation’s public value in terms of public safety and justice, along with the cost-benefit  implications of past, current and future trends.

In his 2002 State of the Union message, President George W. Bush announced the creation of an umbrella citizen service initiative, the USA Freedom Corps, intended to dramatically increase volunteerism. Under this initiative, the Citizen Corps has the central responsibility for mobilizing local volunteers in emergency preparedness and response. Interviews of state officials who will implement Citizen Corps suggest a framework for understanding the success of federal volunteerism initiatives devolved to the state and local levels. Five factors appear important to implementation success: goal clarity, resource availability, promotional activity, management capacity, and the strength of the implementation network.

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