Unfortunately, Southern Regional Education Board (SREB) states are not immune to the economic slowdown sweeping the nation. States are taking action to bring budgets into balance while working to protect essential services and programs. In a 1991 report, "Coping With the Sluggish Economy," SREB noted the accelerated efforts to reshape schools and colleges for the 21st century that might stall due to the recession at that time. While SREB states have worked hard at educational progress in the ensuing years, many economists say that the current situation is the worst since the 1930s. The challenge for the region will be to guard quality and access and continue to improve all levels of education. This paper summarizes actions SREB states had taken as of December 1, 2008 to balance state budgets.