Most states operate on a fiscal year that ends June 30, so state agency buyers typically crank up their spending in the late winter and spring. In many cases, they'll spend unused funds in their budget to justify the same or higher funding for next year.
Advice: Cut your piece of the pie now. Contact state agency procurement offices to see if your goods or services fit their needs. Like the federal government, some states direct a certain percentage of contracts to small businesses.
Good resource: Find links to state procurement offices at http://government.about.com/cs/statebiz.