While tax revenues in many Western states have improved since FY 2011, the 2012 legislative sessions still experienced what has become the familiar round of funding cuts to higher education, coupled with tuition increases for students. The good news is that the cuts and increases weren't as severe as in previous years, despite continued aversion to spending by most state legislatures. The bad news is that the loss of stimulus funds and the rising cost of health care, K-12 education, and other public services mean that states still face a tremendous amount of economic pressure. This "Policy Insights" brief summarizes key themes from the 2012 legislative sessions and highlights some emerging issues to watch in the West. (Contains 1 table and 17 endnotes.)