The state needs to figure out how to cut back. They keep looking for ways to tax or lease or sale state owned properties and eventually run out and realize that they should cut spending.
Depends on what "cut" means. It's been lower than projected, but still is higher than the previous year. The education budget, for example, is constitutionally prohibited from cuts; in fact, it's required to grow. The most recently decried "cut" that the teachers' union staged a strike over was really just their budget's growth being slower lower than they hoped.
If you have numbers on actual spending, year over year, then I'd love to be proven wrong on this, but I've not seen cuts anywhere in the sense of spending decreasing every year for four years.