Making a State Show Yellow For Any Issue

I think this will not work this way. From your screenshot is looks like you have NODES resource on your page, which is grouped by City. Those blobs will only flag red/yellow if child node is down. For any down apps or hardware or interfaces - all you will see is a little yellow/red box in the bottom right corner of the node's icon (as per your screenshot)

If you want some kind of top-level indication - your best bet would be to create a group and add directly intho this group all your nodes, components, hardware sensors, etc. You can create dynamic filter to add all this stuff only from specific City. Then - you will have your parent icon (which is your group itself) light up yellow/red as desired

Hope helps,

Alex