Your in the UK right?
Yes. Libraries were some of the hardest hit facilities/organisations by budget cuts in the last 5 years here, despite massive campaigning.
I don't know if US libraries are state or federally funded, but either way, if your local/national governments are looking to save money they probably will hit libraries eventually (as they seem smart as there's a lot of them and they generally hire few people).
It's an easy thing to be seen to be doing something, but it doesn't have a significant effect on budgets but it seriously affects the communities around those libraries.