As most state governments were beginning their fiscal years on July 1, it looked like another tight year for state spending in many regions--and, by implication, also for appropriations for higher education institutions and state student assistance programs. The National Conference of State Legislatures (NCSL) spring report (www.ncsl.org/programs/press/2005) found that, as lawmakers were crafting their budgets for fiscal 2006, "just over half of states report facing another round of shortfalls." Although the NCSL report also noted that most states collected more tax dollars than originally expected in the first eight months of fiscal 2005--perhaps because of budget officials' conservative fiscal projections for that year following previous years of economic downturn--states are facing rising costs for Medicaid and other health care programs, in addition to demands from K-12, prisons, state parks, and other sectors.