Grkscorp is right; art is always the first thing to go; in schools, in employment, etc. etc.
It's surprising though, that budget is being cut like that in NY. I mean, isn't that one of most highly concentrated places in the world for art? Gee, today it is all about quantity not quality.
Like Grkscorp said, though, don't let it bother you. I am sure you are very talented and very capable. This decision will ultimately affect the company in a negative matter. But it is most important that you are able to support yourself.
Let fellow artists know how things turn out