That worry some moving target is something that the state budget chief has had to keep in mind in preparing the governors biennium budget. Currently it takes into account for $40- 45 million less in direct federal dollars into state government. 

But even with news that immediate across-the -board defense cuts may be averted, there is still some uneasiness about the long- term loss of federal dollars after the death of senior Sen. Dan Inouye.

"I think the loss of Inouye to us is a much bigger problem for us,  than the fiscal cliff because we know we are not going to cure that, in months, or years," Kahle said. 

Kahle and other economists will meet with money committees in the House and Senate on Friday to talk about the financial snapshot of the state.