I have been working with the State of Illinois to get their public .gov SharePoint 2007 site up and running. http://www.illinois.gov.
The site has undergone a major UI and Usability overhaul and is now live! This site is built for all users. Accessibility has been a huge focus. We plan on adding some additional features that will really make this a top 10 State Government Website.
During the process we reviewed some of last years top ranked state government websites: Center for Digital Government Ranking site.
The Governors site is in the process to be upgraded as well.