The current global financial crisis is trickling down to the individual states' strategic enrollment management and education budgets. The situation varies around the country but "...not so many at one time" according to William T. Pound of the National Conference of State Legislatures.

Falling tax revenues and rising budget deficits have caused many states to cut their education budgets this year. The situation is particularly bad in California where frozen credit markets have made it more difficult to borrow operating cash through bonds. The state has been able to meet its current needs but has signaled that it may need to ask for a $7 billion loan from the federal government.

Maryland Governor Patrick O'Malley is trying to plug a $1 billion budget deficit and has resigned that education cuts will have to be made. In Hawaii, $46 million had to be cut from a $2.1 billion K-12 budget. For 2008, Florida had to cut its education budget by $182 million and further cuts are anticipated.

Other states such as Virginia have been able to avoid cuts to education thus far but as the financial crisis drags on, they are looking at some tough decisions. Governor Tim Kaine has avoided education cuts as he tries to close his $1 billion deficit but may be looking to the K-12 budget for the 2010 budget year.

The one bright spot is Texas, where high natural gas and oil prices have buoyed that state's economy. "I suspect we are in better shape than some states," said Debbie Ratcliffe, a spokeswoman for the Texas Education Agency.

The economic situation across the United States is making itself known is very real ways. School administrators need effective enrollment management solutions that can help maintain quality on a leaner budget, which could get even leaner before things improve.