Well the 'Chicken Little: The sky is falling' scenario is not applicable here. The Sky has Fallen! The state is eating up its reserves at several billions each year. No amount of cuts will get the state back into a balanced budget. (Well I guess they could fund the schools and colleges at zero, and quit trying to have a judicial and law enforcement activity, etc.) If we don't solve the budget crisis the long term debt of the state will take the entire permanent fund and then some anyway.
I wish the Governor would make a lot more cuts first, but having examined the finances of the state there must be substantial work on the revenue side if the state is to get to a sound fiscal position,