Make them realize they should be cutting elsewhere (Score 1)

Get the point across to management that you are already overworked and understaffed. Clearly the IT dept management is not getting this across well enough if they are still slashing budgets. Does IT have a real representive when these decisions are made? Perhaps, someone should have some balls and suggest the CEO or upper management take a paycut. In all honesty, maybe you should look into letting disasters creep up and then blame it on being underbudgeted and understaffed. After all you can only push a person so far, if you work your ass off and initech ships a few additional units you probably don't benefit from it. If you have the option/luxury of having a desirable skillset if this doesn't work you can just go elsewhere. Ie, the next time a virus outbreak occurs blame it on lack of funding or better yet, not enough staff to make sure that AV and patch management is in place and working properly.