It's becoming clear that the top issue facing state governments in the coming year will be the nation's fiscal crisis. In many states, revenues are down, unemployment is up, and lawmakers are scrambling to determine a responsible legislative agenda to address the situation.

In California, for instance, just two months after passing a budget in the face of a $15 billion shortfall, lawmakers have learned that they will face a deficit of at least $11 billion next year. Legislators in that state and across the country are holding special sessions to find ways to stimulate local economies.

Many fear that lower-than-expected revenues will force state governments to make steep cuts in primary education budgets and increase fees at colleges and universities. Some states are looking into plans to increase the cost of lunch programs, while education officials in some states are discussing a rare mid-year tuition increase at public universities.

In an effort to meet the home foreclosure crisis head on, many lawmakers are discussing proposals to lessen the burden of economic hardship on residents. Plans range from giving homeowners time to renegotiate loans to the expansion of job training programs. It is too soon to know if these efforts are being effective. Foreclosures were down in September, but rose again last month.