The Pew Charitable Trusts

A history of marijuana laws This has been a bumper year for marijuana legislation, according to state policy observers. Crushing state budget deficits gave advocates in California, Washington, New Hampshire, Rhode Island, New York and elsewhere an opening to pitch marijuana as a new source of tax revenue. At the same time, the Obama administration gave users and distributors some breathing room by signaling in October that it would scale back on prosecuting them as long as they comply with state law.

The recession is forcing lawmakers in some states to search for savings in places that might have been unthinkable a few years ago, including in their prison systems. One of those states is Oregon, where lawmakers last year approved a measure that will result in about 3,500 inmates being released from prison earlier than scheduled.But a recent backlash over the law serves as a reminder of the political sensitivity surrounding "early releases" as a money-saving effort. California, Colorado, Illinois, Kentucky, Michigan and Wisconsin are among the other states that have recently accelerated prisoner releases or are considering doing so.

Faced with historic revenue drops, states have tapped their rainy day funds in fiscal 2009 and 2010 at levels not seen since the 2001 recession to help close budget gaps totaling some $290 billion. The decision to go to these funds has renewed the debate about how much states should be setting aside in reserves and when to use the money. A few states, meanwhile, have been able to leave their funds intact.