The financial hardships that have been plaguing the Nation’s courts are reportedly the worst since World War II. In such a fiscally conservative environment, it is difficult to develop and implement new programs and initiatives, however in 2003 there were observable trends in State courts which are recorded in this report. The reports on trends are presented in 14 separate papers prepared by different authors. Another two papers provide updated information for 2003 regarding judicial elections and court responses to budget conditions. A final two papers focus on emerging trends involving criminal justice and the mentally ill and regulatory changes in the legal field. Within the section on trends are papers that discuss themes involving the collaboration between courts and other institutions to creating solutions to problems within the legal arena, such as addressing the mental health of children under court jurisdiction. Another paper focuses on establishing better means for handling criminal offenders aside from incarceration, while a third paper discusses ways to improve the transfer of parole and probation supervision across State boundaries. Another theme that works its way through these papers involves juvenile and domestic relations, such as issues related to child welfare and policies on adoption. Papers grouped together under this theme include a paper that focuses on expediting dependency appeals, another that considers virtual visitation, and a third paper that discusses safe haven laws. Technological advancements and intergovernmental relations are two other themes included in the report; authors focus on court restrictions regarding cameras and their applicability to non-media observers and educational funding litigation that has resulted from the Federal No Child Left Behind Act. Other authors focus on developments at the recent Court Technology Conference in Kansas City. The environmental scan for State courts makes up the second half of the report and involves the prediction of future trends and developments in State courts. Trends are identified for general future domains, for court enterprise domains, and for court management domains. The environmental scan is presented in table format listing present conditions, probable future developments, and the urgency and implications involved in the particular trends. Ten key challenges revealed by the environmental scan are enumerated. Tables