That's a really tough situation to be in. It's never pleasant to be in a situation when your job is threatenned due to politically driven funding cuts - it's very stressful and would be for anyone. Have you thought about discreetly looking for other jobs while you're still employed, that might give you a sense of having more control, and put you ahead of the game should you lose your job. At the very least I'd spend some time updating my resume.
And if you want a good job search reference I highly recommend, "What colour is your parachute." it's been around for years, but gets updated annually and is very helpful.
Good luck.
--splitimage
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"I danced in the morning when the world was begun. I danced in the moon and the stars and the sun". From my favourite hymn.
"If you see the wonder in a fairy tale, you can take the future even if you fail." Abba
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