As of March 2008, over half of U.S. states are facing projected budget shortfalls for the coming fiscal year. During economic downturns such as this, opportunities available to hard-working, low-wage families are diminished. These conditions create growing concerns for policymakers who must, with fewer state resources, enhance opportunities and provide relief to the affected families in their states. Policymakers want to know that the budgetary choices they make will be wise investments and accomplish their intended goals. To this end, the "Policy Matters" report can be a useful tool because it identifies evidence-based policies and assembles the most recent state data available in order to assist legislators, governors, and other leaders in making these critical decisions. The "2008 update" provides new information on policy measures and highlights key policy changes made by states since the 2007 "Policy Matters" update was published. By providing current information and data, "Policy Matters" can help policymakers, advocates, and researchers: (1) Identify opportunities for additional policy change within states; (2) Compare policy and policy changes across states; and (3) Examine trends by policy area. (Contains 113 endnotes.)