It's not just Public Employees who have been effected by recent economic events, many in the Private sector have been hit as well. Personally, I've lost all vacation pay, all Holiday pay, and am now footing the bill for my health insurance. All told the result is a similar drop in take home pay.
Good news for me was that I was able to cut out some Luxuries and the net effect hasn't been as drastic as one may assume. One area where I have saved a bunch is food. Used to eat out at lunch every day, now by packing a PB&J sandwich I'm saving about 6.50 per day. I've also stopped eating out for dinner and that's probably saving me at least 40 bucks a week. Another slight positive is that currently the cost for my health insurance is excluded from my earned income, however I've seen indications that when Obamacare is in full force I'll lose that tax benefit. Finally, any use of the car is approached with a minimum mile policy, meaning that if I need to do any shopping it's either done on the drive home or combined with other errands. I've also started walking to the local shopping center for minor errands.
End result is that I'm probably eating healthier, getting more exercize, and still putting money into savings every month. Quite simply, there are some strategies that may allow you to cut what you spend each month by a surprizing amount. BTW, one immediate thing you may not have thought of is the cost of Cable TV, take a look at that monthly bill and compare it to the cost of an antenna.
BTW, if you are currently driving a truck or SUV, I would suggest that you sell that off FIRST, gas prices are only going to go up and you'll get more for that truck now than you will in 3 or 6 months. I expect that the automakers are going to see demand for small cars skyrocket in the next 2 years and they won't be able to give away large trucks. I'll also tell you that if you have any watercraft such as jet ski's to sell them now, in very short order value on these toys is going to plummet.