Just read this disheartening story from the BBC about budget cuts for the Tyne and Wear Fire Brigade. The same thing is happening in many American localities as local governments are forced to cut back on essential services. Cuts by States and local governments are a kind of "stealth austerity." They tend to pass under the national radar which is largely concentrated on Washington.
What is interesting about all the talk about deficits and the need for austerity is the fact that not too many people see to care much about it, as Paul Krugman shows in this blog post.While the deficit is a long-term problem, the best way to deal with it is to grow out of the current deflationary slump, not make it worse by cutting more jobs which will only further dampen demand and prolong the suffering of millions of people.