Many of these cuts are finally being felt at the local level, despite being approved by Congress up to a year ago. The Center on Budget and Policy Priorities released a report last week stating that 20 states have made or proposed budget cuts that threaten vital services, including public health programs (13 states), services for the elderly and disabled (five states), K-12 education (nine states), and college and university programs (12 states).

The CBPP report has an excellent passage about the importance of federal assistance during economic downturns - particularly in supporting state level investments:

The federal government, which can - and arguably should - run deficits during troubled economic times, can help states minimize damaging budget cuts by providing assistance to the states, as it did in the recession in the early part of this decade. Federal assistance can lessen the extent to which states take these harmful, "pro-cyclical" actions and prevent budget cuts in vital services residents need.