This chart from the last fiscal update says it all. The state is scheduled to run annual structural budget deficits of more than $2 billion into the term of the next Governor. The deficits have been masked by federal stimulus money, but that will run out in Fiscal Year 2011.
So far, 59% of the budget cuts have been one-time actions as opposed to ongoing reductions.
If the Governor and the General Assembly have a plan to deal with this other than simply waiting until after the election, we have yet to see it.