We've just been informed that the department's budget is going to be cut again. As of right now, the major cut is that the department will no longer be paying for travel to academic conferences for students or faculty. More cuts have been promised soon.
The travel thing is a big deal, but we can still get funding through grants and other organizations on campus. What I'm worried about, and what people are starting to panic about, is what is going to be cut in the coming weeks. Rumor has it that certain software is becoming too expensive for the department to afford... we'll see.