Kentucky
Report: State Unemployment Fund Could Run Dry
The National Employment Law Project, a New York group that monitors employment issues, studied states' unemployment insurance funds and found that many—including Kentucky—were in a worse financial position going into 2008 than they were before the 2001 recession. Officials with the Kentucky Office of Employment and Training say that the fund's current balance—$186 million—is lower than officials would like, but that the fund is currently solvent and healthier than some other states. Its balance is down 31% from $271 million in October 2007. Even if the fund goes dry, the state still is obligated to pay unemployment benefits for those who lost a job through no fault of their own.
Source: Lexington Herald-Leader

Maryland
Governor Considers Furloughs
Although Maryland has no plans for widespread layoffs to ease its budget crunch, state workers might be required to take several days of unpaid leave in coming months. Employees would be required to take six days of unpaid leave by June under one scenario presented to Gov. Martin O'Malley (D) last week by his budget secretary. The move would save the state $48 million in the current fiscal year. 
Source: The Washington Post

New Mexico
State Rated Worst For Worker Insurance
New Mexico ranked worst in the country for the percentage of residents who are covered by health insurance through their employers, according to a new report from the Economic Policy Institute. The Washington, D.C.-based nonpartisan think tank found that 50.7% of New Mexico's population under 65 years old was covered by employer-sponsored health insurance in 2006-2007. Nationwide, nearly 63% of the population under 65 years old was covered by employer-sponsored health insurance.
Source: Santa Fe New Mexican

Virginia
Budget Shortfall Forces Cuts
Gov. Timothy Kaine (D) announced that he is laying off nearly 600 state workers, closing some prisons, and cutting funding for higher education by about 6% as the state struggles with one of its worst financial crises in modern times. In addition, Kaine announced that he is delaying a planned 2% pay raise for state employees until next year, transferring $400 million from the "rainy day" reserve fund, and slashing spending by about $279 million.
Source: The Washington Post

Wyoming
Far-Flung States Prosper in Downturn
As the national economic meltdown takes its toll on local economies, some out-of-the-way states, including Wyoming, are enjoying unprecedented prosperity. Wyoming anticipates a $100 million budget surplus this year, and its economy has grown threefold since 2001. The state is benefitting from a surging energy industry.
Source: Associated Press