The authors explore the extent, causes, and proposed solutions of the current fiscal crises from a historical perspective of state finance. Although the current fiscal crises are severe, it becomes more difficult to assess without a more complete understanding of the historical changes that have occurred in state revenue and expenditure streams. The authors address the role of major expenditures and revenue sources in the context of the current slowdown and how reliance on various revenue sources has changed over the past 50 years. The role of nontraditional revenue sources, such as state lotteries and casino gaming, will also be discussed. The authors further address various fiscal institutions—such as tax and expenditure limitation laws, rainy day funds, and balanced budget rules—and explores the role each play in state budgeting and finance.