Hard (and scary) to make decisions/plans in this kind of environment: Here's a link to another article "Budget Crisis Hurts University Research Programs" and some info on sequestration effects at the University of California:
http://www.huffingtonpost.com/2013/03/09/budget-crisis_n_2843174.html?utm_hp_ref=email_share
http://www.universityofcalifornia.edu/news/documents/sequestration_fact_sheet_022613_final.pdf
sigh...