With word last week that unemployment has reached a 16-year high, states all across the country are dealing with job loss. But some places have been hit harder than others. NPR looks at which states have been affected the most by the poor economic climate.

As job losses and home foreclosures mount, many lawmakers are becoming increasingly focused on poverty alleviation as a matter of policy, and with as many as 40 states expected to grapple with budget shortfalls in 2009, leaders are looking to the federal government for help in paying for aid programs.

In an effort to save money, many places are now scaling back ambitious public work projects. The American Association of State Highway and Transportation Officials estimates that as many as 5,000 different projects have been stopped, many with work left half-completed. California is one state facing a particularly difficult set of decisions, having been forced to put nearly $4 billion of road improvements on hold.

Public education has been another target of cost-saving measures. With many schools expecting to see less money from state and local governments this year, administrators are asking parents to help pay for basic resources like textbooks, school supplies, and teacher salaries. Parent organizations have long contributed to special activities, sports teams, and trips, but this funding of core school expenses is a new trend. Many worry that it might encourage local governments to contribute even less to public education.

As a way to raise money to offset budget deficits and provide for essential services, many lawmakers are looking to privatize tangible assets owned by state governments. Up for sale are rights to administer toll roads, parks, and lotteries, and many states are looking to get rid of interests in airports, sports arenas, and golf courses, as well.

Even with the tough economic climate, many states are looking to pass new laws to benefit veterans. In Oklahoma, a ballot measure -- sponsored by Democrats and approved by 85 percent of the vote in November -- will exempt disabled veterans from paying personal property taxes. In New York, former soldiers will get a boost to their applications to civil service positions. And veterans in California will have access to special low-interest farm and home mortgage loans. Other states are considering similar measures.

In state after state, lawmakers are grappling with the economic crisis.

Earlier in the month, in his regular radio address, President-Elect Obama announced his intention to develop a "two-year 'Economic Recovery Plan' that would create 2.5 million jobs patching crumbling infrastructure, modernizing schools and building wind farms, solar panels and fuel-efficient cars." State leaders are hoping that they will receive some portion of that stimulus package to boost local economies.

In Colorado, a committee of lawmakers focused on creating jobs and boosting the state economy is weighing options about what can be done in the face of a worsening national climate. A panel of economists briefing the group told the legislators much the state's job situation will be dictated by circumstances nationwide.

In Indiana, plans to boost education spending are being reevaluated as lawmakers come to terms with the state's economic situation. Revenue in the state is not meeting earlier projections, and the state's obligation to cover increases in Medicaid costs are adding to the concerns. Indiana has a cash reserve of $1.4 billion which could be used to prevent some of the worst cuts.

In Washington state, educators are worried about what the economic slump will mean for state's public colleges and universities. Lawmakers are being told to prepare for a deficit of $5.1 billion, and because funding for many services like K-12 education are mandated by law, many expect that higher education will be asked to absorb some of the harsher cuts.

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.