The favorable revenue forecasts greeting state lawmakers as they begin convening for the 2006 legislative season are tempered by the spiraling costs for Medicaid, high energy prices, and increased demands from K-12 and higher education. Continuing a trend that began three years ago, fiscal officers in 42 states told the National Conference of State Legislatures (NCSL) in a survey that they expect revenue collections for the current fiscal year to be above projections. According to the survey, education is expected to be a top fiscal issue in 15 states vying with health care in 23 states. This article reports on projected cost overruns in K-12 and higher education, Medicaid, and high energy costs among others in different states based on the NCSL report.