This paper examines critical issues for states and advocacy groups in trying to develop short-term goals to address mental health needs of refugees and to plan long-term strategies for state and county service systems for this population. The paper begins with a discussion of the following issues: (1) centralized versus decentralized state mental health systems; (2) specialized versus mainstream programs; and (3) locus of control in state and county mental health systems. This is followed by a discussion of the characteristics and distribution of the refugee population from state to state, the varying state approaches to resource allocation, and the emergence of coalitions of various ethnic groups. The remaining sections discuss the scale of the overall service system and its resources within states, new potential funding resources, and regional coordination of resources. References are included. (TE)