With Congress set to convene to tackle sequestration and the fiscal cliff, the talk has once again centered around federal budget cuts and their potential effects. Tax hikes are back on the table, according to a few prominent Republicans this weekend. A large number of difficult military cuts looms. But few are thinking about the other layers of public spending that will be affected. State budgets will see massive effects from a potent mix of direct spending cuts and revenue reductions based, ironically, on the expiration of the Bush Tax Cuts.