Some are doing okay, as others find ways to weather the 'storm' in Niles. more>
Update - November 14, 2008 - Cutbacks in Hollywood, along with cutbacks in the film festival world, as already hard to come by money is 'drying up' and money used from city taxes have to be saved for more pressing needs. Link to article from Variety about layoffs and budget cuts from networks to film studios.
Also, here is a general report about the outlook for festivals in the UK from the BBC.