With all of the attention placed on federal budget problems, it can be easy to forget that state budgets are facing similar troubles. Since almost every state has some form of a balanced budget requirement, states can be extremely susceptible to swings in the economy, and the recent recession is a perfect example. In an effort to help ameliorate the states' fiscal situation, President Obama recently signed into law a $26 billion state aid bill passed by Congress in a rare August session. The bill, which includes $10 billion in education funding and $16 billion for state Medicaid programs, is expected to save some 300,000 jobs. Still, it pales in comparison to the actual size of the fiscal problem facing the states.