George Mason University just prepared an impact report that is going to be created by the Budget Control Act of 2011. Keith Hennessey has a summary. Most of the effects will not be seen until 2013 so I suspect cuts will be done in the next fiscal year to contracts and indirect job loses. The fiscal year will start beginning in October which is a short 2 1/2 months away.
Some of the states will take cuts as large as a city and others is so small the change will be negotiable. Their conclusions is the impact will be significant on the economy.