It is happening here in Jacksonville. The routs themselves haven't been changed, but they are only running ever half hour instead of every 15 minutes. This has been in effect for about a month. Come to think of it, it happened right after they extended the bus routs to the beach. According to the sign at the bus stop, they plan more cutbacks and a rate increase in the near future... good thing i have a year pass...
It's pretty sad how our nation funds mass transit. I alternately road the bus or my bike for 6 months straight 2 years ago and it worked very well for me. In fact it worked so well that I wish bus service went to my new work location. That said, the bus was always crowded. The afternoon trip home always had me wondering whether I would even get to sit down at all. Yet despite the utilization of the line I rode, it was still only every 30 minutes, and was really only convenient by chance of where I chose to buy a house.
So many other locations in my town involve up to a 10 minute walk just to get to the nearest stop - only to wait for up to half an hour at a time. It's amazing so many people ride the bus at all here given those obstacles.